Risk monitoring &
Risk Reporting

Business App 'Portfolio Management'

The Challenge

REDUCE CREDIT RISKS AND SECURE THE STABILITY OF THE PORTFOLIO

leveraged_lending

A universal bank in the D-A-CH region was looking for a digital solution to optimize its risk reporting in the lending business. The bank's risk managers require the ability to provide information at any time, as well as process control and continuous audit compliance in risk reporting and the management of the derived measures. In the past, this was largely done manually in the bank using Microsoft Office and e-mail. However, these solutions did not meet the regulatory requirements and could no longer provide the transparency and speed demanded by management.

Our client's issue grew out of the "Principles for the Effective Aggregation of Risk Data and Risk Reporting" (BCBS 239) released by the Basel Committee on Banking Supervision. But also today, new requirements for risk reporting continue to emerge from regulatory contexts such as the EBA guidelines or Environmental, Social, Governance (ESG), which require a multi-risk type IT infrastructure. A solution must transfer the data required for reporting into an overarching management view and provide transparency about impact modes.

In collaboration with the bank's project team, the following requirements for the digitalization project were identified:

  • Cross-divisional definition, collection, and processing of risk-relevant data and their reporting with high quality and speed
  • Strengthening risk management to cope with stress and crisis situations
  • A representative and holistic view of the current business situation for decision-makers
  • Requirements of the Basel Committee on Banking Supervision must be met in a timely manner

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isfinancial Banking Platform: Business App 'Portfolio Management'

THE solution for transparency and speed in risk reporting

The business app 'Portfolio Management' was implemented together with the universal bank and our business partner IBM on the isfinancial banking platform. The application is based on a pre-designed concept with customizable reporting elements as well as easily configurable process models for report generation.

  • mockrocket-capture (4) (1) (1) (1)The app supports, controls, and documents the collaboration of all parties involved in the risk reporting process
  • Data is transferred into an overarching control view to create transparency about modes of action in the current portfolio
  • Data and meta information from a data warehousing risk or other data sources are integrated and used as a reporting basis
  • Existing report definitions can be continued
  • Existing work processes and responsibilities are mapped
  • Seamless integration of the application into almost all existing IT infrastructures, IT policies, and business processes

The implementation on the isfinancial banking platform offers our customer a balance between agility and change dynamics on the one hand, and stability and conformity on the other. The universal bank thus benefits from the advantages of a flexible process and solution platform and those of a stable and compliant production system.

22%

Reduction of the costs of
report creation

Narrower control and
decision-making tools

31%

Reduction of the lead times for risk reporting

Faster risk-adjusted decisions in transparent financial markets

100%

Reduction of the documentation workload

Fully automated documentation of all activities along the risk reporting process

"With isfinancial, we were able to implement a solution that is a perfect fit for the customer's use case and at the same time meets the regulatory requirements. We are also in contact with the bank regarding the implementation of future regulatory requirements."

Project Manager IBM Germany

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DIGITAL RISK REPORTING

Six challenges in implementing fully digital and compliant risk reporting within nine months.

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Do.Risk

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