The Importance of Using COREP in A Corporate World!
Today, is one of the standard reporting tools in the European countries for corporate houses. It is known as a common regulatory reporting standard and has been validated by the EBA (European Banking Authority)
What COREP covers?
The common regulatory reporting standard covers market risk, credit risk, operational risk, capital and solvency. It is included in Basel III. Specialized financial firms also provide iXBRL solutions to their clients for preparation of financial reports alongside. The main aim is to enable improvisation in risk identifications and facilitate financial trend forecasting along with risk analysis.
As per the notification of the FSA, organizations in UK and Ireland will be required to use the common reporting standard in their statutory reports. However, it was seen that some firms are still facing issues when it comes to shifting from their previous tools and methods to this system. This is due to the prevailing ignorance of its planning, managing and execution. Here, the specialized firms can assist in COREP reporting.
COREP data system:
Once the companies understand its basic operations and how reports are generated with help of the data, it would be simple to have a gap analysis for defining the steps needed to generate the right data. The COREP submissions will involve careful perception on the current changes and new requirements of the data, collecting the data from a third party and accounting system. The third step will be to convert the reports into proper XBRL format.
The expert firms which give services for COREP and iXBRL now assist their clients into preparation of new data requirements, big exposure reporting, increased data granularity, and defining changes to current data set reports. This is only in locations where common reporting and FINREP are introduced fully.
Right reporting guidance:
The clients can get a reviewed business requirements using this system for guidance, assessment of current plans and necessary modifications in their current practice from the expert firms. Furthermore, utilization of COREP for risk and financial processes is also undertaken.
It will still take some time before the corporate houses will gauge the importance of the software and implement it fully!