How to design and implement an effective ICARA

Robust prudential requirements are prescribed within the European Investment Firms Regulation (IFR) and Directive (IFD), accounting for the specific risks entailed in the provision of investment services. EU-regulated investment firms, such as Cyprus Investment Firms (CIF), shall employ sound processes for assessing and maintaining capital and liquidity levels, proportionate to the nature, scale and complexity of their activities. For that purpose, a CIF is required to design and implement an effective Internal Capital Adequacy Risk Assessment (ICARA) process to determine adequately the said levels.

Within this article, the SALVUS Risk Management team outlines important information for the ICARA process and discusses specific implementation principles and factors, as follows:

1. What is ICARA?
2. What are the ICARA implementation principles?
3. ICARA building blocks
4. Implementation success factors

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Find the full article here: https://salvusfunds.com/2022/11/10/how-to-design-and-implement-an-effective-icara/