We are offering hands-on consulting services to help you meet the EBA reporting deadlines and ITS standards. Discover how complementary we can be.....

1. CRD IV and EBA reporting
BUSINESS & DECISION
RISK TECHNOLOGY CONSULTING

2. The regulatory context
HELICOPTER VIEW OF UPCOMING COMPLIANCE REQUIREMENTS
•
Supervisory reporting requirements applicable to credit institutions as from 2014
–
–
–
•
COREP
–
–
–
–
–
–
–
•
EBA released ITS directly applicable without further transposition
Extended COREP and revisited FINREP reporting requirements
New XBRL taxonomy and data point model released at EBA level to further harmonize process
Own funds and own funds requirements
Losses stemming from lending collateralized by immovable property
Information on large exposures
Leverage ratio
Liquidity reporting
Reporting on asset encumbrance
Forbearance and non performing exposures
FINREP
– Reporting on financial information

3. The actual challenge
BASEL III AS ACCELERATOR FOR NEEDED CHANGE
•
•
•
•
•
It does not happen at the credit department anymore
It becomes a true data challenge with increased focus on sourcing, quality and monitoring
Shared governance and increased involvement of finance and treasury to make it happen
Genuine enterprise-wide risk understanding, interpretation and measurement 'capabilities
Next to a solid reporting platform there is a need for increased assistance in business consulting and
downstream conversion / execution

4. You might want to ask yourself…
UNREVEALING KEY CONSIDERATIONS ONCE YOU DIG A BIT DEEPER
•
How will we be able to meet both the implementation guidelines and greater frequency
and granularity of reporting?
•
How are we going top cope with the significant additional reporting burden and can
current infrastructure support it?
•
What will the post-COREP risk and finance operating model look like?
•
How will we capture the additional data required effectively and ensure appropriate
controls have been applied around quality of content?
•
What other regulatory changes do we need to manage in parallel?

5. Dependencies…
THAT ARE NOT BEING ADDRESSED WITH A TECHNOLOGY SOLUTION
•
Regulatory interpretation
–
•
Implementation timelines
–
•
The Q1 2014 deadline provides a remaining implementation timeline of just a few months which
should include all testing and assurance on the new process
Risk and finance operating model
–
•
Although some of the reports are well known (i.e. risk classes, capital adequacy…) others are new
(i.e. liquidity reporting) and might lead to confusion in terms of meaning
Risk and finance functions must work closely together to ensure deep understanding of the
underlying information and provide clarity over who signs off on data and reports
Data availability and governance
–
–
–
–
The reporting function in finance will have greater responsibility on providing and attesting to risk
and other data contained in the COREP reports
Granularity of data in COREP may require additional fields to be created in source platforms
Consistent data definition across increased landscape will be required
Greater reconciliation and other control measures will be needed

6. Why considering another service provider?
COMPLEMENTING SERVICE OFFERINGS ALLOW A 360° APPROACH
•
True complementarity and leverage of a long-lasting relationship with reporting solution
vendors for both banking and insurance market across different levels of collaboration
•
The combined service offering of software vendors and B&D allows customers to take
advantage of our consulting services beyond reporting and ramp up the chain
–
–
–
–
–
Conducting readiness assessments with tools developed over a number of years
Expertise in development of reporting data models and reporting solutions
Data acquisition capabilities to merge data from multiple disparate systems with cleansing and
transformation
Training and change management expertise to embed process changes in the business
Specific regulatory, technology, data and project leadership expertise to lead and support delivery

7. Conclusion
CLOSING THOUGHTS AND FINAL RECOMMENDATION
•
The implementation challenges are significant
and time to implement extremely short
•
Informed decision-making on the preferred
implementation approach as well as
identification of data challenges and a robust
technology solution will allow you to optimize your
implementation
•
There are a range of non-competing and highly
complementary services to be delivered right
in between your preferred systems integrator and
your reporting solution vendor.
•
A “wait and see” approach is likely to negatively
impact your ultimate ability to comply in an area
of increased regulatory complexity
•
We´d be delighted to meet you person to deepen
some considerations and challenge your present
approach to compliance

8. A glimpse at our delivery consultants
A RISK COMPETENCE CENTER IN THE HEART OF AN INTEGRATOR
•
Risk-specialists with emphasis on
–
–
–
–
–
•
Broad business domain understanding
(Financial Services, Banking, Insurance)
Educated and well-trained business knowledge on
risk management and regulatory frameworks
Business intelligence concepts, methodologies
and tools (data warehousing and data
governance)
Both project management experience and
certification (Prince II)
Understanding of banking technology solutions
and most common software packages
backed by +2000 BI profiles throughout the B&D
group

9. What makes us different?
INCREMENTAL VALUE CONSULTING APPROACH ACROSS THE FULL CHAIN
Gap extract
Data analysis
Scoping of assignment
Multiple source systems
Business review
Internal data sets
Approach and expected
External data
outcome
requirements for Basel
• Internal organization
III calculation and
• Regulatory and
internal reporting needs
business context
•
•
•
•
•
•
Inventory
Collection
• Governance, processes
• ETL - collect and
and controls
transform the required
• System, standards and
data
technologies
• Store for processing in
• Existing thoughts re B3
single location in logical
architecture
data model
• Inventory of risks and K
• Data quality and
ratios
governance
Target
Preparation
Target ratio calculation
•• Data aggregation in a
and/or context
Basel IIIaggregation
approach
• Setting up of financial
• information integration
Target organization
(RACI
marts matrix)
• Reporting (internal and
legal) and financial
control
Scenarios
Calculation
•• Calculation of tactical
Strategic vs. capital
requirements leverage
solution and
• Aggregation
potential
•• Calculation of new vs.
Project risks; cost
capital ratios
benefits assessment
• Technology choice and
rationale
Action plan
Reporting
• Preferred scenario roll-out
• Existing financial
plan
reporting
• Project initiation phase
• MIS and financial control
(PRINCE II)
• Legal reporting
• Project and solution KPI's
• XBRL conversion
• Maintenance, handover
and production

10. The EMEA Risk Practice
A ONE-STOP SERVICE PROVIDER
Discovery
Phase
Solution delivery
Phase 0 … phase n
Gap Analysis
Master Plan
Disparate data
sources
Infrastructure
and applications
ETL and reconciliation
Information
Management
ERM
Risk engines
Technical Architecture
Training, testing
and QA
Application
Architecture
Maintenance
Data
governance
Solutions
Introduction to our
capabilities and cost/benefits
discussion
Inadequate
applications
Solution Delivery
Business Process
Design
Organization &
processes
Challenges
Engagement
Find out whether
and where B&D
can add value
Perform gap
analysis,
interviews across
dept., formulate
and quantify
needs, design
solution and
create a master
plan for delivery
Solution
Architecture
Support
Post deployment
support and
services to sustain
success
Analytics &
reporting
Understand what is in place,
what has been realized and
road map
Business & Decision provide technology and services to create
capabilities required by the regulation and beyond based on the
client specific needs
Ongoing support and
optimization in order to
facilitate deployment

11. Follow us!
We would be delighted to help you address the challenge

12. Benoît Berck
Manager Banking Risk
EMEA Risk Practice
benoit.berck@businessdecision.com
 +32 (0)491 86 89 00
Philippe Meyer
Director
EMEA Risk Practice
philippe.meyer@businessdecision.com
+32 (0)476 97 67 82