Automation of Risk Management Data Import, Calculation and Reporting/Dashboarding for an International Development Bank (IDB)
Overview
Aspect Advisory was engaged to rework and automate various core components of the central risk management, liquidity portfolio and ALCO reports as well as the Expected Credit Loss (ECL) model for an international development bank. The main objective being to reduce the need for manual inputs and adjustments to the data and calculations reliant there on. This would allow for a quicker turnaround on reporting preparations and thus an increased frequency of potential report generation.
Solution
In order to provide a solution, it was required to first fully understand the current process flow. A complete evaluation of the existing data flow as well as calculation procedure was undertaken to address any inconstancies or shortfalls and insure validity in the replication of results. A formal resolution was then designed keeping with the request of simplicity and ease of useability. Raw data obtained directly from various internal sources of the bank was processed and then centralised into a singular source. From this point all further calculations could make use of this singular source allowing for simpler trace back and consolidation checks etc. Final core values and performance metrics are then captured and stored in an appropriate table structures for use further downstream in data analysis and report generation.
Result
Final output allowed for a compartmentalised break down between raw data input, calculations, structured data output and reporting components. Overall manual tasks/inputs was drastically reduced allowing for faster and more efficient production of required outputs, resulting in an enhanced ability to make timely informed decisions on risk management within the bank.
Insight
The importance of having a unified and centralised data source for reporting purposes within a financial institution can never be overstated. It allows for departmental data consistency, mitigates data redundancy and eliminates potential discrepancies. This centralized approach enables all business units to leverage a single source of truth, enhancing operational efficiency and data integrity.
Themes
Banking, Risk Management and Reporting, Data Automation and Processing
Skillset
Process Flow design, Data & Calculation Automation (Excel & Power Query), Report Generation (Power BI)
Business Area
Risk Monitoring, Management and Reporting