Objectives for the Operational Finance process1. Reduction of excel models providing ‘Single source of the truth’2. Increased controls, monitoring and elimination of redundancies and standard processes3. Less data collection and number crunching, allowing more analysis / scenario modeling work 4. Adaptable to rapid changes in the business environment5. Clarity of roles, responsibilities and associated organization structures Opportunities for the Institution:1. Elimination of “time honored” tools supported by specialized resources2. Reduction of staff, especially in non-finance areas3. Consolidation of finance resources in central support functions4. Re-skilling of resource toward analytics and business driven modeling5. Adoption of standard tools and processes6. New job role definition and reporting relationshipsSource: Deloitte
To help financial institutions grow, manage risk, and optimize shareholder value, Oracle delivers a comprehensive, integrated suite of financial services analytical applications for enterprise performance management, including profitability management, funds transfer pricing, pricing management, and balance sheet planning. Now more than ever, financial institutions, their regulators, and shareholders are focused on the need to measure and meet risk-adjusted performance objectives, price products to reflect their true risk, and better understand how the institution is impacted by threats to liquidity, capital adequacy, and exposure to market rate volatility. As Regulators continue to drive best practices adoption, the big idea behind an integrated risk and finance platform is the notion of being "compliance centric" . where business processes, analytic data models, application functions, and policies are designed with accounting, regulation, and risk requirements built in at the transaction level. In a compliance-centric institution, a single set of data, policies, analytics, and rules is used to trigger appropriate risk decisions and regulatory reporting, financial entries, and indicators that demonstrate the use of required control procedures.Key to success for a financial institution is a comprehensive strategy that combines well-designed technology architecture, a suite of analytical applications for risk-aware decision making, and a commitment to raise the analytical orientation of its people toward fact-based decision making.
In the post-crisis landscape, effective risk management should be considered a matter of using the information derived from analytical risk assessment to make better strategic decisions and drive growth appropriately. In this way, risk management becomes a proactive, ongoing initiative tasked with creating value in addition to protecting assets and guarding against failure.Oracle Enterprise risk management solutions span all areas of risk, including credit, market, operational, liquidity, fixed asset, business and reputation risk, enabling institutions to manage all their risk and provide necessary feeds for compliance-based reporting. The capabilities of Oracle for risk management help financial institutions address compliance issues such as Basel II that demand a close operational synergy between finance and risk functions. Integrating risk and finance in financial services centers around four pillars:1. A financial center of excellence with a strong analytical orientation and a set of shared services supporting the institution across all significant lines of business2. Integrated data and information model, with a single "golden source," and ownership and custody of information that is used for finance, strategy, risk, and compliance3. A unified/common technology architecture and set of open standards and services for transaction and data integration, policy management, analytics, metrics, reporting, collaboration, and internal control across core enterprise financial management functions, both inside and outside the organization4. An ability to adapt to change . in accounting standards, regulations, and business requirements
The Oracle ReferenceArchitecture provides comprehensive support for all business events emanating from transaction systems, across the Accounting, Analytical, BI and Reporting landscape.Data resides where relevant to support business processes with ability to link the various levels of data without replicating data or processes to reduce redundancy and improve efficiencyProcesses e.g. currency revaluation are run in application(s) where it is native and only once, where relevant, with the ability to utilise the resultant information across the system in order to reduce customizationShared referential data (dimensions, hierarchies, rates)Pre-defined and consistent validations across data movements within the environmentNo contention between reporting and processingEfficient data structures for enhanced performance
4. Financial Services IBU Solution SetsSolution Enterprise Risk and Finance Set Enterprise Risk and Finance Risk Adjusted Enterprise Risk Agile FinancialPlaysSales Finance Performance & Capital Services Modernization Mgmt Adequacy Analytics Basel III - Accounting Profitability Finance & Risk Capital Modernization Management Data Warehouse AdequacyPointsEntry World Class Financial Close Risk Adjusted Liquidity Risk Business & Reporting Performance Management Intelligence IFRS Planning and Interest Rate Compliance Strategy Risk in FS Optimization Management Financial Crimes & Compliance
5. Focus AreaFinance Modernization DeliveringVisibility, Efficiency and Control to the • Accounting Centralization and Complianceoperational finance • General Ledger Consolidationprocess in a highly • Financial Close Management Automatedmanner, allowing the • Reporting and Analytical Transparency Finance • Disclosure Analytics Organization to • Data Management and Control Focus on higher value partnerships with the business
6. Focus Area Risk Adjusted Performance ManagementEnable Complete and • Multidimensional Profitability Comprehensive Insight into • Unit Cost Development Performance and • Funds Transfer Pricing Profitability. Deliver • Economic Capital Attribution key business measures Enterprise • Management Reporting and Analytics Wide to make better • Planning and Forecasting business decisions
7. Focus AreaEnterprise Risk and Capital Adequacy Enable a Holistic View of Risk and • Regulatory Capital Compliance Compliance leadingto Superior Decision • Market, Credit, Operational Risk making, Unifying • Stress Testing and ICAAP Risk • Liquidity and Interest Rate RiskIdentification, Quanti fication, Stress • Risk Reporting and Analytics Testing and Capital • Financial Crime and Compliance Planning processes across the Enterprise.
8. Enterprise Risk and Finance Industry Best Practices Architecture Source Accounting and Finance IntelligenceTransactions Accounting General Close/Capital Finance Hub Ledger Mgmt Warehouse General General Consolidation Ledger Ledger GL (THICK) (THIN) Portal Plan & Procurement Sub Ledgers Operational Expenses Forecast Data Daily Assets Accounting Rules Average Close & Payables Balance Disclosures Dashboards, Re ports, Ad Hoc Performance and Risk Data Staging Risk & Results Performance Area OLAP Analysis Core and Trading Account & Enterprise Systems Customer Performance Performance Management Mgmt Ledger Enterprise Risk Risk Alerts & Transactions Management Exception Based Management Technology/Hardware Master Data Mgmt Controls, Governance
9. Financial Services IBU Solution Sets Enterprise Risk and Finance Sales Plays Lead Economic Bill of Materials Customers Pillar BuyerFinance Apps CFO • ERP (Accounting Hub & GL) • Many for selected components e.g. FAH,Modernization (ERP) • OFSAA-EPM– PFT / PFT BI GL, HFM • Hyperion -HFM, C&D Mgt. • Implementing full stack • OFSAA-ERM (Rec Framework, (OFSAA+eBusiness ERP+EPM) – RBS Hedge Management) • Implementing Operational Finance) – • Edge – DRM, OPA, GRC Nomura, Scotiabank • TIAA CREF – (completing GL, OFSAA and BI.Risk Adjusted Apps CFO • OFSAA-EPM – PFT, FTP, PFT BI, • Implementing – NAB (FTP & “ManagementPerformance (OFSAA) ALM BI, BSP Ledger”) • OFSAA-ERM – ICAAP Analytics, • Implementing – PNC, TIAA CREF, FifthManagement Economic Capital and/or Basel II Third, USAA • EPM – HPCM, Planning, B/S • Live – US Bank Planning, Hyperion Strategic • Many OFSA 4.5 clients for PA, TP (and to Finance, Scorecard, DRM, BI a lesser degree RM) ApplicationsEnterprise GBU CRO or • OFSAA-ERM, ALM, Credit, • Implementing – PNC (Credit Risk, Basel II)Risk & Capital (OFSAA) GM Treasury Operational, Market, Liquidity, • Implementing – JP Morgan (Liquidity Risk), Basel II,ICAAP ANZ (ALM for Liquidity Risk)AdequacyAgile Financial GBU CIO • FSGBU – FSDW / OFSAAI, Rec • Implementing – BNY MellonServices (FSDW) Framework, Basel II Analytics • Implementing – RBS • Apps – PFT BI, ALM BIAnalytics • EPM – OBIEE, ESSBASE, DRM
21. TIAA CREF Sales Play – Finance Modernization COMPANY OVERVIEW SOLUTIONS a Fortune 100 financial services organization that is • Oracle General Ledger and Financial Acctng the leading retirement provider for people who work in Hub the academic, research, medical and culture fields. • Oracle Financial Services Analytical Headquartered in NYC, TIAA CREF serves 3.7 million Applications (Data active and retired employees participating at more Model, Profitability, Profitability Analytics) than 15,000 institutions and has $453 billion in • Oracle Business Intelligence combines assets under management (as of 12/31/10). • Oracle Planning and Strategic Finance • Net Income: US$ 1.405 billion (2010) • Employees: 7,2000 EXPECTED BENEFITS • Single source of consolidated and detailed finance and management information MISSION/OPPORTUNITIES • Efficient and centralized accounting and• Reduce complex, redundant and costly processes general ledger prohibiting timely and efficient financial • Comprehensive best practice engines and close, detailed management information and intelligence for multi dimensional profitability reporting analytics• Provide world class configurable solution(s) to the • Enterprise strength and ease of use business institution for developing performance metrics with intelligence providing transparency and the necessary transparency to drivers and results actionable data.• Investment in technologies that will support • Provide technologies and solutions that can corporate strategy for growth scale for performance and the expected aggressive growth of the institution.
22. SwedbankCustomer Profile Business ProblemsActivities: Retail BankingGeography: Regional, •Old Backoffice systems (ATLAS) was being replaced (Calypso), including Accounting EngineNordics Europe •Old GL could not be immediatelyAnnual turnover decommissioned (basis for reporting)~ 1.000 Billion € •New GL Structure/Architecture •Need for new integrated platform for AccountingHistorically being a group of individual & Analytics(independent) Savings Banks, the largest ones •Not adequately prepared for future sources ofbeing merged and listed transaction data •Straight through processing with clear statusKeeping administration for the rest of Savings trackingBanksBusiness Requirements Project InfoFeed multiple CoAs Status: Live since June 16th 2008 Implementers: Functional setup: Cap GeminiSupport transition from old to new system (no Project Management: Local Partnerimmediate cross-over) FAH functional: Oracle consultingKeep separate ledger for separate Savings Banks Technical: Oracle Consulting + CustomerBeing able to enter Manual JournalsCentralize and store Accounting rules
23. Nomura Holdings – INTERNAL USE ONLY Sales Play – Finance Modernization COMPANY OVERVIEW SOLUTIONSNomura Holdings is the parent company of Nomura • Oracle Peoplesoft Financials and ExpenseSecurities, Japans leading investment bank and brokerage Managementhouse. The company performs trading, equity and bond • Hyperion Financial Managementunderwriting, research, and mergers and acquisitions • Hyperion Profitability & Cost Management(M&A) advisory services. It also makes private equity and • Hyperion Financial Data Quality Managementventure capital investments. Nomuras largest segment is • Financial Analyticsdomestic retail, which provides investment consulting and • Supporting Oracle Technologybrokerage services to consumers in its home market..Nomura Holdings has operations in more than 30 countries.In 2008, Nomura acquired the European and Asianoperations of Lehman Brothers, as part of it’s goal to EXPECTED BENEFITSbecome a leading Global Investment Bank Objective of Global Financial Architecture(GFA): • Assets Under Mgt ¥24.7 trillion(FY 2010) • To build the platform to allow for strategic • Total assets ¥36,692,990 million (FY 2010) decision making through timely and dynamic • 35,630 employees reporting to executive level personnel - Daily, accurate management information MISSION/OPPORTUNITIES - Allow faster adoption to social and• Become a world class competitive financial services institutional changes group • Achieve efficient management and cost• Create Change to contribute to the development of reduction by consolidating multiple IT assets capital markets and generate growth opportunities and disparate business processes globally.• Act as a bridge between Asia including Japan and - Cost reduction by server consolidation Europe and the United States
24. National Australia Bank – INTERNAL USE ONLY Information Analytics Platform Transformation Sales Play – Information management, ERM COMPANY OVERVIEW SOLUTIONS National Australia Bank is a financial services • Oracle Financial Services Analytical organisation with over 40,000 people, operating more Applications (Profitability, FTP, ALM Data than 1,800 branches globally. NAB operates major Model, Profitability Analytics, Corporate and financial services franchises in Australia, as well as Retail Credit Risk, Basel II, Basel II Analytics) businesses in New Zealand, Asia, the United Kingdom and the United States. Each brand is • Oracle Financial Accounting Hub uniquely positioned but built on a common • Siebel UCM commitment to providing quality products and services, fair fees and charges, and relationships built EXPECTED BENEFITS on the principles of help, guidance and advice. • Support core banking transformation by • Net income A$4.58 billion (2010) realigning activity execution • Total assets A$685 billion (2010) • Provide support for support for multi-branding and rapid product manufacture independent MISSION/OPPORTUNITIES of brand• Assisting exploitation of NextGen Banking Platform • Establish a holistic perspective across• Drive cost reduction through Process enterprise service focuses – risk simplification, Technology simplification,Reduction , finance, operational support in reconciliation and control effort, Reduction in cost • Reconcile information across the required of change dimensions• Enhancing individual business capabilities • Leverage industry maturity and development• Mine the cross enterprise services opportunities to reduce complexity and speed reaction (particularly Risk , Finance, Capital Management time to market opportunities and regulatory and Customer Insight) needs
25. Royal Bank of Scotland – INTERNAL USE ONLY FiRST - Finance and Risk Systems Transformation Sales Play – Finance Transformation, ERMAbout the RBS FiRST Program• FiRST is a transformation exercise which RBS has embarked upon with an aim to bring unification & greater transparency to finance & risk processes within the bank• The bank with the success of this program aims to present a coherent picture to the regulator (FSA – Financial Services Authority) in the UK across its risk & finance numbers• The bank has hired a senior-level executive to own the unification of risk and finance• RBS has done an extensive evaluation for finance, consolidation & risk systems as the Anatomy of the Deal bank is looking at a player who can invest in this proposition as a partner & support a Tier1 Split across LOB’s (Net LF), approx. % of deal for each Oracle LOB global player such as RBS OFSAA (FSGBU) 27%• The bank’s aim is to do as minimal ERP customizations as possible and deploy the out- ERP II 26% of-box functionality proposed as part of the Oracle solution stack Apps EPM 22% BI 5%• The bank intends to complete the Technology 20% transformation exercise by FY 2013 Total 100%
27. Enterprise Risk and FinanceGlobal ContactsERF Global Solution Manager Asia Pacific Stuart Houston Yadhunath Srinivasan Stuart.firstname.lastname@example.org email@example.com +852 6016 5399 +65 8112 7152 Based in Hong Kong Based in Singapore The Americas Europe, Middle-East, Africa Bill Greene Stephen Skrobala firstname.lastname@example.org email@example.com +1 973 960 4796 +34916312801 Based in New York Based in Madrid, Spain