FRTB Delivery Insights: Practical Lessons from the Front Line 

Learning from lived direct experience

Many FRTB programmes fail not because firms misunderstand the regulation, but because they underestimate the organisational, data, governance, and operating model changes required to achieve compliance. A robust Readiness Assessment must therefore go beyond a regulatory gap analysis and provide a practical delivery roadmap. 

Brickendon’s strength lies in combining regulatory expertise, market risk knowledge, technology delivery experience, and transformation leadership, enabling us to assess readiness from both a compliance and implementation perspective. 

While firms have invested heavily in methodology and technology, many delivery programmes continue to encounter challenges around governance, data quality, risk factor eligibility, and stakeholder alignment. 

1. Governance Issues: The Hidden Delivery Risk 

In many FRTB programmes, governance becomes the primary cause of delay rather than the regulatory calculations themselves. Common challenges include: 

• Unclear ownership across Market Risk, Finance, Front Office and Technology teams. 

• Multiple interpretations of regulatory requirements. 

• Slow decision-making and approval processes. 

• Inconsistent model governance and documentation standards. 

• Limited executive visibility into programme risks and dependencies. 

Brickendon perspective: Successful firms establish a dedicated FRTB Steering Committee supported by clear RACI definitions, decision logs, escalation pathways, and KPI-driven governance reporting. Our experience shows that disciplined governance significantly reduces delivery risk and regulatory remediation costs. 

2. Data Sourcing: The Foundation of FRTB Success 

FRTB implementation requires robust, auditable, and traceable market data processes. Many institutions struggle with: 

• Fragmented source systems. 

• Incomplete market data histories. 

• Poor data lineage documentation. 

• Limited reconciliation between risk and finance platforms. 

• Lack of ownership for critical data elements. 

Brickendon perspective: We help clients establish end-to-end data lineage, identify authoritative data sources, design reconciliation controls, and create sustainable operating models that support both regulatory compliance and business objectives. 

3. Risk Factor Eligibility and RFET Challenges 

Risk Factor Eligibility Testing (RFET) continues to be one of the most operationally intensive aspects of FRTB. 

Typical challenges include: 

• Insufficient real price observations. 

• Data aggregation issues across trading desks. 

• Inconsistent eligibility assessment processes. 

• High volumes of Non-Modellable Risk Factors (NMRFs). 

• Lack of transparency into remediation opportunities. 

Brickendon perspective: Our consultants combine quantitative expertise with operational delivery experience to design practical RFET frameworks, streamline eligibility assessments, and reduce NMRF capital impacts through targeted remediation initiatives. 

4. PMO Structure: Driving Delivery at Scale 

A successful FRTB PMO must coordinate a broad set of stakeholders including: 

• Front Office 

• Market Risk 

• Finance 

• Risk IT 

• Data Management 

• Model Risk Management 

• Regulatory Reporting 

Key PMO capabilities should include: 

• Integrated planning 

• Dependency management 

• Regulatory milestone tracking 

• Benefits realisation management 

• Executive reporting 

Brickendon perspective: We deploy specialised regulatory PMOs that bridge business, risk, and technology teams, ensuring transparency across workstreams while maintaining focus on regulatory outcomes. 

5. Stakeholder Management: Keeping the Programme Aligned 

FRTB initiatives often span multiple years and jurisdictions. Without effective stakeholder management, programmes can become fragmented. 

Critical success factors include: 

• Clear communication strategy. 

• Defined decision-making forums. 

• Regular executive updates. 

• Cross-functional workshops. 

• Consistent regulatory interpretation. 

Brickendon perspective: Our consultants act as trusted advisors across business and technology stakeholders, helping organisations align priorities and accelerate decision-making throughout the FRTB journey. 

Recommended Next Steps: FRTB Readiness Assessment Checklist 

Organisations should assess their readiness across five dimensions: 

Governance 

• Steering committee established 

• Defined RACI model 

• Regulatory decision log maintained 

• Executive sponsorship confirmed 

• Policy approvals completed 

Data 

• End-to-end data lineage documented 

• Golden source identified 

• Historical market data available 

• RFET datasets validated 

• Data quality controls implemented 

Methodology 

• SA methodology approved 

• IMA readiness assessed 

• RFET framework operational 

• NMRF management process defined 

• Documentation complete 

Technology 

• FRTB calculation platform implemented 

• Source system integrations complete 

• Performance testing executed 

• Environment strategy defined 

• Release management process operational 

Controls 

• Data quality monitoring in place 

• Model governance controls implemented 

• Audit trail available 

• MI and reporting controls operational 

• Regulatory evidence repository established 

Estimated Client Outcomes 

By conducting a structured FRTB Readiness Assessment, Brickendon helps clients: 

• Identify key delivery risks before regulatory testing. 

• Reduce programme delays and remediation costs. 

• Improve RFET and NMRF outcomes. 

• Strengthen governance and accountability. 

• Accelerate regulator readiness. 

• Build a realistic and achievable implementation roadmap. 

Sample Executive-Level Assessment Output 

At the conclusion of the engagement, Brickendon would provide: 

Governance 

Status: Amber 

Key Findings: 

• Regulatory ownership unclear 

• Steering Committee requires enhancement 

Data 

Status: Red 

Key Findings: 

• RFET data gaps 

• Incomplete lineage documentation 

Methodology 

Status: Amber 

Key Findings: 

• SA implementation progressing 

• NMRF framework not fully operational 

Technology 

Status: Amber 

Key Findings: 

• Core platform available 

• Integration testing outstanding 

Controls 

Status: Green 

Key Findings: 

• Strong audit evidence framework 

• Reporting controls established