Foundation Layer
Core Foundations
Establish scope, purpose, roles, ownership, and policy architecture for the ICAAP programme.
ICAAP purpose and philosophy
Programme governance and accountability
Risk universe and materiality framework
Capital definition and policy architecture
Foundation objective
This layer defines what the institution means by ICAAP, which legal entities are in scope, how the annual cycle operates, and which governance bodies carry responsibility.
Minimum design outputs
- a policy hierarchy covering ICAAP, capital management, stress testing, and validation
- an ownership map across risk, finance, treasury, and business teams
- a calendar showing review milestones and approval points
- a clear articulation of the use test
Why it comes first
Without a strong foundation, later quantification sections become difficult to defend because assumptions, escalation paths, and review rights are not anchored.
Next actions
Translate the framework into institution-specific policies and evidence packs.
Link methodology choices to ICAAP governance forums, MI, and challenge records.
Document management overlays and validation judgments explicitly.