Executive Overview
European Central Bank (ECB) inspections of valuation frameworks have become markedly more rigorous, forensic, and data-driven. Supervisors now undertake deep reviews across valuation governance, pricing models, market data, methodologies, controls, and underlying system architecture. These inspections extend well beyond high-level compliance checks, placing sustained pressure on Valuation Control, Product Control, Market Risk, Model Risk, Quantitative teams, and the Front Office.
For banks, the challenge is twofold: responding effectively to the intensity and breadth of supervisory scrutiny, while continuing to run business-as-usual activities without disruption. Success depends on preparation, technical depth, disciplined execution during the inspection, and robust remediation once findings are issued.
Brickendon’s ECB Valuation Inspection Lifecycle Support offering is designed to address this challenge end-to-end. We support institutions before, during, and after ECB inspections—helping them prepare with confidence, manage the inspection efficiently, and deliver sustainable remediation that meets supervisory expectations.
Our services span the full inspection lifecycle:
Preparation → Diagnostic Review → On-Site Support → Post-Inspection Remediation
This integrated approach combines advisory insight, hands-on delivery, and deep technical expertise across valuation, risk, data, and regulation.
ECB Readiness Training and Awareness
We equip senior management and technical teams with a clear understanding of how ECB valuation inspections operate in practice, including timelines, phases, deliverables, and supervisory techniques. This includes insight into typical documentation requests, interview styles, data sampling approaches, and recurring findings observed across the market.
Interview and Workshop Preparation
ECB interviews and walkthroughs are often highly technical and cross-functional. We prepare senior stakeholders to articulate valuation processes, methodologies, and controls with clarity and confidence. Targeted coaching helps teams respond effectively to probing questions, evidence requests, and challenges across Front Office, Risk, and Finance boundaries.
Documentation Readiness Review
We review policies, procedures, methodologies, model documentation, and governance artefacts to assess inspection readiness. Gaps, inconsistencies, or weaknesses in evidence are identified early, with practical recommendations to strengthen clarity, alignment, and supervisory defensibility.
Our diagnostic reviews are aligned to ECB expectations and common inspection themes, providing a realistic assessment of control maturity and regulatory risk.
Governance and Operating Model
Market Data Governance and Lineage
Pricing Model and Model Risk Governance
Independent Price Verification (IPV)
Valuation Adjustments Framework
P&L Control Processes
IFRS 13 Fair Value Hierarchy
Prudent Valuation (AVA)
Systems Architecture and Controls
Management Information and Governance Forums
Inspection PMO and Programme Management
We provide central coordination of all ECB information requests, document management, and evidence tracking. Daily reporting keeps senior management informed, while structured governance ensures deadlines are met without compromising quality.
Technical Subject Matter Expertise
Our specialists provide hands-on support across:
Capacity Augmentation
To protect business-as-usual operations, we provide temporary analysts and senior SMEs to support evidence gathering, documentation, and direct engagement with ECB inspectors.
Response Quality Assurance
All inspection responses are reviewed for accuracy, completeness, and consistency, ensuring alignment with internal policies and regulatory expectations while avoiding unnecessary commitments or supervisory red flags.
Findings Interpretation and Impact Assessment
We analyse ECB findings and supervisory letters in detail, identifying root causes and cross-functional impacts across valuation, risk, finance, and systems.
Remediation Programme Design
We design pragmatic remediation programmes, defining workstreams, timelines, governance, and resourcing. This includes the design of a target operating model for Valuation Control aligned with supervisory expectations.
Execution and Delivery
Brickendon supports the delivery of remediation initiatives, including enhancements to valuation methodologies, IPV frameworks, valuation adjustments, model governance, systems, data controls, and documentation.
Validation and Evidence for Closure
We prepare comprehensive evidence packs to support remediation closure, including effectiveness testing, backtesting, and documentation for supervisory review. Our teams support clients through closure discussions with the ECB.
Through this offering, clients are able to:
Brickendon combines regulatory insight, technical depth, and delivery capability to help banks navigate ECB valuation inspections with confidence and control.
Brickendon is a specialist consulting firm supporting financial institutions across risk, regulation, data, and transformation. We work with banks, investment firms, and regulators to strengthen governance, enhance control frameworks, and deliver complex regulatory change.
Our team brings deep, hands-on experience across valuation control, prudent valuation, market data governance, model risk, and supervisory inspections. We combine regulatory insight with technical delivery capability, enabling clients not only to meet supervisory expectations, but to build valuation frameworks that are robust, transparent, and sustainable.
Brickendon is trusted by leading institutions to support high-stakes regulatory engagements, including ECB inspections, remediation programmes, and target operating model design.
ECB valuation inspections are intensive, technical, and increasingly demanding. Early preparation and expert support can materially reduce regulatory risk and supervisory impact.
If your institution is preparing for an upcoming ECB inspection, responding to findings, or seeking to strengthen its valuation control framework, Brickendon can help.
Contact us to discuss how our ECB Valuation Inspection Lifecycle Support can support your organisation either via this email: [email protected]
Alternatively you can complete this contact form and we will be in touch: https://www.brickendon.com/contact-us/