SAP for-solvency-2-reporting-rds-solution-details

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SAP for-solvency-2-reporting-rds-solution-details

  1. 1. Solution Details SAP Rapid Deployment Solution for Solvency II Regulatory Reporting
  2. 2. © 2012 SAP AG. All rights reserved. 2 Contents Introduction to SAP Rapid Deployment Solutions Overview of the Solution Solution in Detail  Financial Consolidation for Solvency 2 Regulatory Reporting  Disclosure Management for Solvency 2 Regulatory Reporting Service Delivery Technical Details
  3. 3. Introduction to SAP Rapid Deployment Solutions
  4. 4. © 2012 SAP AG. All rights reserved. 4 Today’s reality… “ “ Statistics state that up to 70% of IT projects run late, over-budget, or do not meet planned goals…Consequently, implementation risk is a critical factor… From “Introducing Packaged Solutions” by Michael Krigsman Now when companies think about implementing an application, they really want to implement an integrated solution. Henry D. Morris, Senior Vice President of Worldwide Software and Services, IDC Customers today want choices in how they scope, configure, and deploy business software. Peter M. Russo, Managing Director of Pierre Audoin Consultants
  5. 5. © 2012 SAP AG. All rights reserved. 5 You want to… … ensure the most predictable and fastest time to business value … deliver the integration the business demands to start and grow without compromises … choose from a modular ready to use portfolio of solution, deployment and pricing options
  6. 6. © 2012 SAP AG. All rights reserved. 6 SAP and a global partner ecosystem offer Rapid Deployment Solutions to meet specific business needs… Software Quickly address the most urgent business processes Content SAP best practices, templates and tools make solution adoption easier Enablement Guides and educational material speed end user adoption Service Fixed scope and price provides maximum predictability and lowers risk SAP Rapid Deployment Solutions Service Software Enablement Content RAPID DEPLOYMENT SOLUTIONS
  7. 7. © 2012 SAP AG. All rights reserved. 7 … which allow predictability, out-of-the-box integration and adoption choices as business demands Predictability  Fast value in days/weeks  Fixed cost and fixed best practice scope Integration  Integrated start and growth options  Immediate and future IT and business processes landscape integrity Choice  Modular packages to meet specific business needs and allow individual adoption paths  Flexible licensing and deployment options SAP Rapid Deployment Solutions
  8. 8. © 2012 SAP AG. All rights reserved. 8 Why have customers chosen SAP Rapid Deployment Solutions? 8 Weeks to go-live 15% Reduction in project costs 4 Week implementation
  9. 9. © 2012 SAP AG. All rights reserved. 9 Delivered by SAP or qualified partners  Large Global Partner Ecosystem maximizes availability of and choice within the Rapid Deployment Solutions portfolio  System integrators and value-added resellers provide industry and LoB specific capabilities and expertise  Cloud partners provide the deployment options to match your business needs
  10. 10. © 2012 SAP AG. All rights reserved. 10 SAP Rapid Deployment Solutions define a new standard for business solution adoption across the SAP Portfolio On demand On premise On device Deployment Business Solutions Analytics Technology Solution Portfolio Industry & LoB HANA Mobility Innovations
  11. 11. © 2012 SAP AG. All rights reserved. 11 SAP Rapid Deployment Solutions support all use cases along your adoption path From zero to ERP baseline in one go Industry & geography-ready New business and user capabilities – that fit with your existing footprint LoB or industry-specific, mobile, business analytics, collaboration Start Grow, extend, innovate Predictability Integration Choice
  12. 12. © 2012 SAP AG. All rights reserved. 12 Get the most out of your business – NOW! Quickly meeting your most pressing business needs on unprecedented predictability to adopt and manage business solutions Enabling strategic business adoption paths with out-of-the-box integration for start and grow options as your business demands Giving choice by providing a modular and well defined portfolio of solution options together with a Global Partner Ecosystem
  13. 13. Overview of the solution
  14. 14. © 2012 SAP AG. All rights reserved. 14 Business challenges There is a solution  This RDS offers customers a major implementation accelerator with pre-configured Solvency 2, Pillar III content on an integrated solution architecture  Financial Consolidation provides a complete Solvency 2 data-model to collect, to reconcile, to validate and to consolidate the Solvency 2 data  Disclosure Management supports the end-users with creating, validating and publishing the required quantitative and qualitative reports Support and improve your business leveraging the power of your Solvency 2 reporting solution All insurance companies operating in the EU need to comply with Solvency 2 regulation as of January, 2014*. Within the context of the Pillar III requirements, the insurance companies face a series of challenges to overcome: Designing and structuring the data needed to comply with the Solvency 2 reporting requirements Collecting data from a high variety of source-systems Guaranteeing correctness and consistency of both source data and consolidated data Alignment with IFRS Data-access protection and reporting workflows Reporting facilities supporting XBRL *Revised implementation assumptions overview We have revised our implementation assumptions in light of the discussions in Europe about splitting the implementation dates for Solvency II (also referred to as bifurcation). We will only revisit these assumptions if there is a significant change in the dates beyond 2014. Our revised planning assumptions are that: •1 January, 2013 is when the responsibilities of supervisors and EIOPA will be switched on (i.e. transposition of the Directive would have to be complete by 1 January 2013). This date has been moved to 31/03/2013 and might even be further postponed to 30/06/2013. •1 January 2014 is when the Solvency II requirements will be switched on for firms. There are issues still to be resolved in Europe, including the approach to groups, equivalence, reporting and transitionals. We have developed an approach that balances what we need to do to carry out our regulatory obligations and bring in the new regime, with the needs of the industry. This approach to implementation depends on whether the firm intends to use the standard formula or an internal model.
  15. 15. © 2012 SAP AG. All rights reserved. 15 A modular solution One benefits from a full integration by implementing both Disclosure Management and Financial Consolidation, but a customer can choose for one or the other. Example 1: An insures needs to deal with many different source-systems to collect Solvency 2 data. He needs a new consolidation environment for Solvency2 data as well as a reporting tool. The customer chooses both FC and DM. Example 2: An insurer already has a sound consolidation system in place. He does not consider that the SAP Financial Consolidation brings him added value. He can choose to only have the Disclosure Management with the preconfigured QRT’s for receiving the structured data, for validating the data, and for creating the QRT reports. Example 3: A customer already has a reporting tool to support the generation of the needed reports. He can choose to only have the SAP Financial Consolidation contents to collect, validate, consolidate and structure the Solvency 2 data ready for disclosure (the report-data in the FC pre-configured data-model already are structured as QRT’s)
  16. 16. © 2012 SAP AG. All rights reserved. 16 Solvency 2 – Pillar III Requirements Solvency 2 Pillar I: Quantitative Requirements Calculation of required Solvency Capital (SCR, MCR) Solvency 2 Balance Sheet Pillar II: Qualitative Requirements Own Risk and Solvency Assessment (ORSA) Governance System Pillar III: Reporting and Disclosure Requirements Report to Supervisor (RSR) Solvency and Financial Condition Report (SFCR) Quantitative Reporting Templates (QRTs)
  17. 17. © 2012 SAP AG. All rights reserved. 17 Solvency II Reporting Solution Architecture SAP Business Warehouse Non- SAP Business Warehouse Other Data Sources SAP RDS for Solvency II Regulatory Reporting Dashboards, Analysis, Data Visualization SAP BusinessObjects Data Services SAP DM SAP FC
  18. 18. © 2012 SAP AG. All rights reserved. 18 Business Process Scope Covered in this RDS SAP Financial Consolidation Collection of data relevant for S2 Data Upload Manual entry if needed IFRS alignment Inter/intra document data controls Corrections Consolidation (solo/group) Quarterly Reporting Yearly Reporting 65 QRT’s (RSR & SFCR)
  19. 19. © 2012 SAP AG. All rights reserved. 19 SAP Financial Consolidation Features:  Standardized Functionality for Data Collection, System Controls, Process Monitoring, Calculations, Financial Consolidation, Reporting and Auditing  Integration with SAP BW, SAP BusinessObjects Business Intelligence and non-SAP Reporting Tools  Fast Implementation in SAP & Non-SAP based architectures This RDS adds … o Pre-configured content for Solvency II, Pillar III Reporting
  20. 20. © 2012 SAP AG. All rights reserved. 20 SAP Disclosure Management Features:  Provides Collaborative Workflows for the creation of Reports from data-collection, over analysis and validation, to disclosure  Supports XBRL  Can also be integrated on a multitude of data sources This RDS adds – Pre-configured Solvency II, Pillar III Content (65 quantitative reporting templates; RSR and SFCR report structure
  21. 21. © 2012 SAP AG. All rights reserved. 21 SAP Financial Information Management Link your data-sources: FIM is an optimized ETL tool for SAP FC and other Data Sources Standard Integration with SAP ECC and SAP BW Key Features •User controlled – Give finance an easy,repeatable process •Comprehensive application support – Integrate with SAP EPM solutions •Simplified mappings – Set up and maintain data mappings with a wizarddriven integration interface •Metadata browsing – Browse metadata in the SAP ERP application or the SAP NetWeaver® Business Warehouse •component when creating mapping tables •Automated audit trail – Have a trail for every data move •Drill to origin and drill to source – Drill back to view the data source •Validations – Detect invalid mappings and missing dimensions •Extensive connectivity – Connect to SAP and non-SAP software systems SAP Financial Information Management (FIM) is not part of the RDS but FIM is the recommended tool to interface SAP FC to your source systems (e.g. solo-entities; IFRS- database;…)
  22. 22. © 2012 SAP AG. All rights reserved. 22 Business benefits Measurable success Shorter leadtime for report generation Less error-processing Benefits for you  The RDS is a major accelerator for a Solvency 2, Pillar III implementation at both solo and group level  Build a trustful relationship with customers shareholders, rating agencies and other stakeholders  Align the Solvency 2 balance sheet with IFRS and improve the investors insight  Have a solid basis for additional internal risk reporting  Take advantage of a large eco-system to support you with adopting the solution to changing legal requirements
  23. 23. Financial Consolidation for Solvency 2 Regulatory Reporting
  24. 24. © 2012 SAP AG. All rights reserved. 24 What’s included Business benefits  Pre-defined Solvency 2 content providing a major implementation accelerator  A central Solvency 2 consolidation tool that can be easily interfaced with any source system  Supporting alignment between IFRS and Solvency2  A solid source to support internal financial and risk reporting  A data-model structured to facilitate the maintenance and control of the various data like assets, technical provisions, reinsurance, balance sheet Financial Consolidation for Solvency 2 Regulatory Reporting : scope and benefits  A pre-defined data-model to collect and consolidate data needed for the Solvency2 Quantitative Reporting Templates  Both solo and group requirements are supported in the data-model  Consolidation of the Solvency Balance Sheet and reconciliation with IFRS and local GAAPs  Pre-defined reports are mapped on the report structure in Disclosure Management
  25. 25. © 2012 SAP AG. All rights reserved. 25 In the system Key process flows covered  Quarterly and yearly reporting cycles for the respective Solvency 2, Pillar III Quantitative Reporting Templates – Collection of data – Validation of data – Consolidation of data – Transfer to DM
  26. 26. Disclosure Management for Solvency 2 Regulatory Reporting
  27. 27. © 2012 SAP AG. All rights reserved. 27 What’s included Business benefits  Pre-defined Solvency 2 content providing a major implementation accelerator  integrated with the BFC pre-configured consolidation reports  Assuring consistency of quantitative reporting templates  Reporting and Data Visualization  Ready basis for the creation of the qualitative reports Disclosure Management for Solvency 2 Regulatory Reporting: scope and benefits  65 preconfigured QRT templates (including the Financial Stability template)  QRT-structure mapped on the BFC data-model  Reporting workflow templates  Chapter structure for RSR and SFCR This can also be implemented on a non-BFC source but will require additional mapping effort with the source data-model
  28. 28. © 2012 SAP AG. All rights reserved. 28 In the system Key process flows covered  Reporting workflow for the quantitative reporting templates  Reporting workflow template for RSR and SFCR – Creating the report structure – Editing of chapter documents – Finalization of the consolidated report content
  29. 29. Service Delivery
  30. 30. © 2012 SAP AG. All rights reserved. 30 Implementation Testing Key User Training Successful rollout and adoption Configuration documentation Get a footprint for Solvency 2, Pillar III live in 12 weeks Start RunDeploy Expectations 1 3 Project management Kick-off workshop participation Check technical infrastructure Mutually-approved scope document Working SAP system User-acceptance testing Onsite and remote support 2 Note: This slide represents a typical deployment. Exact details may differ according to solution. Results Superior support to ensure smooth functioning
  31. 31. © 2012 SAP AG. All rights reserved. 31 Implementation Options – implementation time FC + DM Week 1 2 3 4 5 6 7 8 9 10 11 12 Financial Consolidation (50 days) Disclosure Management (35 days) FC only Week 1 2 3 4 5 6 7 8 9 10 11 12 Financial Consolidation (50 days) DM only Week 1 2 3 4 5 6 7 8 9 10 11 12 Disclosure Management (95 days)
  32. 32. © 2012 SAP AG. All rights reserved. 32 Pre-defined Services for Rapid Deployment Solutions Your path to Go-Live: fast, efficiently and at predictable cost  Fixed-price Implementation Services  Pre-defined Project Methodology  Ready-to-use Accelerators Start RunDeploy1 32 Project management Kick-off workshop participation Checking technical infrastructure Accelerators / Deliverables Consulting Delivery Guide Project schedule WBS Service Delivery Model, roles and responsibilities Request for consultants template Process descriptions Process-flow-documents Kick-off presentation Consumption Guide Pre-delivery requirements and checklist Solution Realization Master Data Load Refinement Workshop & Refinement Realization Knowledge Transfer to Key Users Accelerators / Deliverables Installation guide Solution Documentation Solution Manager content Best-Practices content (pre-configuration) Configuration activities Consulting Delivery Guide Implementation Content Performance Tests End User Training Sign off of solution Go-Live Preparation Go-Live Post go-live support and activities Improvements and road map workshop Accelerators / Deliverables Test cases Deliverable acceptance forms Training Materials – Process-flow recordings etc. Go-Live Checklist Note: This slide represents a typical deployment. Exact details may differ according to solution.
  33. 33. © 2012 SAP AG. All rights reserved. 33 Configuration Guide Scoping Questionnaire Kickoff Workshop Project Schedule Support PortalCheck Lists Implementation methodology Start RunDeploy1 32 Note: This slide represents a typical deployment. Exact details may differ according to solution.
  34. 34. © 2012 SAP AG. All rights reserved. 34 Project plan and timelines Prepare Project Kick off workshop Select Options Check Installation SAP involvement Customer involvement Start RunDeploy1 32  Activate Solution  Confirm Solution  Acceptance Testing  Train Key Users  Set up Customer Data  Transport  End-user Training and Organisation Change Management  Prepare Production  Project Sign-off &Support Note: This slide represents a typical deployment. Exact details may differ according to solution.
  35. 35. © 2012 SAP AG. All rights reserved. 35 What’s included – Service scope Get a footprint for Solvency 2,Pillar III live in 12 weeks This RDS comes with three separate service offerings: •Offering 1, to implement the FC Solvency 2 content •Offering 2, to implement the DM Solvency 2 content on SAP FC (this complements Offering 1) •Offering 3, to implement the DM Solvency 2 content on a non-SAP FC source This provides to the customers the flexibility to choose the services they need. Find more details of each of the offerings on the following slides A special step-by-step guide describes each activity during the deployment
  36. 36. © 2012 SAP AG. All rights reserved. 36 What does SAP deliver? What do you have to do? •Provide the customer-data for the elementary values of the FC dimensions and their attributes /characteristics (Entity, Assets, Line of Activity, Treaty id, Placement id, SPV, Risks ...) •The configuration of upstream and downstream interfaces •The mapping between the IFRS statutory consolidation and the IFRS column included in the Balance sheet data packages for the IFRS / Solvency II reconciliation process (for both the chart of accounts and for the IFRS consolidation journal entries) •The customer defines the list of users, their functional profile and the data access groups •The customer will perform User Acceptance Tests in order to validate the whole application Offering 1 (FC), Key deliverables (1/2) •The SII pre-configuration standard documentations and installation procedure •The Blue Print document (this document needs to be validated by the customer) as per the ASAP methodology •Assistance and process for updating the elementary values of the FC dimensions and their attributes / characteristics in the FC dimension builder with the customer Master data •The integration of FC with Disclosure Management Installation (implementation on thick •clients computer only and for 5 computers at the same location) •A methodology to support the customer for performing the mapping / Datalink definitions between sources systems and FC 10.0, if required
  37. 37. © 2012 SAP AG. All rights reserved. 37 What does SAP deliver? What do you have to do? •The customer performs the historical data loading (comparative data) •The customer is in charge of updating the Solvency II pre- configuration standard documentation with the customer- specific changes •The customer is in charge of organizing and lecturing the FC End users training (logistic aspects, training rooms, technical architecture, preparation of the training materials) Offering 1 (FC), Key deliverables (2/2) •Testing scripts for data collection, controls, adjustments, elimination and analysis •A methodology to support the customer for performing the historical data loading •A methodology to support the customer for organizing the FC end-user training. SAP delivers •also standard business process documentation to ease the preparation of this end-users training. •go live support / implementation validation
  38. 38. © 2012 SAP AG. All rights reserved. 38 What does SAP deliver? What do you have to do? •The customer defines for SAP Disclosure Management the list of users, their functional profile and the workflows •The customer will perform User Acceptance Tests in order to validate the whole application •The customer performs the historical data loading (comparative data) •The customer is in charge of updating the Solvency II pre- configuration standard documentation •The customer is in charge of organizing and lecturing the Disclosure Management end users training (logistic aspects, training rooms, technical architecture, preparation of the training materials) Offering 2 (DM on SAP-FC), Key deliverables •The Solvency II pre-configuration standard documentations and installation procedure •Update of the Solvency II pre-configuration, with regard to the customer specific Master data •Installation check report for 2 environments : 1 test and 1 productive •Testing documents •A methodology to support the customer for organizing the SAP Disclosure Management end-user trainings. SAP delivers also standard business process documentation to ease the preparation of this end-users training. •Implementation validation assistance
  39. 39. © 2012 SAP AG. All rights reserved. 39 What does SAP deliver? What do you have to do? •The customer defines for SAP Disclosure Management the list of users, their functional profile and the workflows •The customer will perform User Acceptance Tests in order to validate the whole application •The customer performs the historical data loading (comparative data) •The customer is in charge of updating the Solvency II pre- configuration standard documentation •The customer is in charge of organizing and lecturing the Disclosure Management end users training (logistic aspects, training rooms, technical architecture, preparation of the training materials) Offering 3 (DM on non SAP-FC), Key deliverables •The Solvency II pre-configuration standard documentations and installation procedure •Update of the Solvency II pre-configuration, with regard to the customer specific Master data •Installation check report for 2 environments : 1 test and 1 productive •Testing documents •A methodology to support the customer for organizing the Disclosure Management end-user trainings. SAP delivers also standard business process documentation to ease the preparation of this end-users training. •Implementation validation assistance
  40. 40. © 2012 SAP AG. All rights reserved. 40 Project team: SAP SAP Project Lead  Serves as a central contact person, from project initiation to going live and support  On the SAP side, responsible for functional project management, coordination, support and coaching of the customer’s project manager, and so on SAP Consultants  Responsible for implementation of the agreed upon scope for the rapid-deployment solution
  41. 41. © 2012 SAP AG. All rights reserved. 41 Project team: customer Leading Project Manager  Serves as a central contact person, from project initiation to going live and support  On your side: responsible for functional and commercial project management, coordination, overall project controlling, preparation of steering committees, and so on Basis staff  Especially responsible for the installation and administration of the development and productive system landscapes Functional department staff / key user  Responsible for workshops, questions from SAP, end-user training, and possibly as a power user for simple configurations Specialized Staff (Optional)  Responsible for further specialized areas such as customization and configuration Note: This slide represents a typical deployment. Exact details may differ according to solution.
  42. 42. Technical Details
  43. 43. © 2012 SAP AG. All rights reserved. 43 Software Requirements Product Product Version Component Logical Component in SAP Solution Manager* Comments SAP BusinessObjects Financial Consolidation 10.0 Not applicable Not required SAP BusinessObjects Disclosure Management 10.0 Not applicable Not required Microsoft Office Excel 2003 or higher Not applicable Not required
  44. 44. © 2012 SAP AG. All rights reserved. 44 System landscape SAP Financial Consolidation business content Financial Information Management SAP Financial Information Management (FIM) Front-end reporting tools (Dashboards, Web portal…) Solvency II (SII) data model (analyses) Solvency II (SII) data model (analyses) SII input schedules (figures & comments) and controls SII input schedules (figures & comments) and controls SII consolidation (figures & comments) and calculations SII consolidation (figures & comments) and calculations SAP Disclosure Management business content QRTs , IFRS/S2 reconciliation and validation reports QRTs , IFRS/S2 reconciliation and validation reports Task to schedule upload high volumes of metadata (Custom development)
  45. 45. SAP Rapid-Deployment solutions The fastest way to run your business better More information: http://service.sap.com/rds-sii3

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