Abacus360 Banking. An integrated platform for 360 reporting, risk calculation and controlling regulatory KPIs. Service Overview Abacus360

Transcription

1 Abacus360 Banking An integrated platform for 360 reporting, risk calculation and controlling regulatory KPIs Service Overview Abacus360

2 Bank regulation continually intensifies the pressure placed on financial institutions with new requirements such as AnaCredit, BCBS 239 and IFRS 9. Fundamentally, we are noticing the following significant key trends: the replacing of form-based reports with data cubes, an ever-increasing influence of regulations on banks product portfolios and the need to integrate regulatory KPIs into the bank s management. These movements have far-reaching consequences for banks, not least upon their IT estate as inevitably new software solutions will now be required. In light of this situation, BearingPoint has developed a new generation of its proven Abacus software: Abacus360. Amplifying supervisory requirements and the trend away from form-based reporting to data cubes present a challenge to banks and necessitate innovative, high-performance software solutions. Abacus360 stands for a holistic 360 approach in two respects: First, the new platform goes far beyond mere reporting and integrates comprehensive functionality for reporting, risk calculations and controlling regulatory KPIs. Second, the new platform covers the requirements of all stakeholders along the Regulatory Value Chain it can be used by firms as well as by supervisory authorities and covers the different processes along the value chain. Financial institutions are facing considerable functional and technical challenges After the adoption of the Basel III framework, the requirements regarding liquidity monitoring have significantly increased. The fundamental reason for this was the worldwide financial crisis, which revealed that liquidity risk has been underestimated by many market participants. Therefore, the European regulators have implemented stricter quantitative and qualitative regulatory guidelines in order to establish risk management incentives and to intensify risk monitoring. The new guidelines will affect banks product portfolios they will have to adapt their business to the new requirements in terms of risk regulation. Consequently, the regulatory KPIs have to be considered more seriously in long-term planning and management, i.e. banks will now have to also actively monitor and steer their risks from a regulatory perspective and anticipate the possibility of any effects to regulatory KPIs. Therefore it is crucial that regulatory reporting data is integrated within the overall bank s management in order to achieve greater transparency surrounding the influence of business transactions on regulatory liquidity ratios. In taking the particular demands of the constantly expanding risk dashboards of the European Banking Authority (EBA), coupled with the new regulatory requirements such as AnaCredit, BCBS 239 and the Fundamental Review of the Trading Book (FRTB) into consideration, an obvious fact arises that financial institutions will have to face substantial functional and technical challenges in order to maintain the ability to adhere to regulatory compliance: Regulation Industrialization controlling dependencies frequency FINREP planning internalmodels automatization newregulation standardization prospectivity granularity regulatorymanagement dataquality SREP AnaCredit COREP EBA FRTB complexity adhoc BCBS239 ownfunds stresstesting cost Business modell An increasing interdependence between the areas of regulatory reporting, risk management, treasury, accounting and finance Active monitoring and controlling of the regulatory KPIs in order to anticipate the possible impacts of market changes and business policy Consideration of regulatory KPIs in the overall bank s management Intensified requirements for data granularity, availability and quality Requirements regarding data and functional consistency, resulting from BCBS 239 and cross validations, for example processing significantly larger data volumes 2 Service Overview Abacus360

3 Automation and industrialization are the answers The expanding supervisory requirements have proved to be a great challenge and cost driver for bank s IT departments. IT infrastructure and processes have to be optimized in order to quickly and reliably deliver the required data in the mandated quality and granularity. Process automation and innovative solutions are required to enable financial institutions to be prepared for the coming functional and technical challenges in the near future in a cost-effective way. FIGURE: REQUIREMENTS FOR FUTURE-ORIENTED IT SOLUTIONS Integration of new reporting requirements (AnaCredit, ALMM, Asset Encumbrance, ECB/EBA stress testing ) Increasing interdependencies between reports, across frameworks as well (e.g. CoRep/FinRep or BCBS 239) Consideration of different accounting standards (Local Gaap/IFRS) Ad-hoc requests, stress tests and simulations are firmly established by EBA Group-wide data governance and increased focus on group level Functional Design of an extended data model for all relevant areas in the bank Modularization of all function blocks in an integrated architecture Architecture maintenance must be sustainable with a long-term outlook IT architecture must ensure scalability and performance in daily operations Transparent and easy visualization of the underlying data model & calculations Technical Abacus360 In the future, supervisory compliance will be more than regulatory reporting. With Abacus360, based on the proven Abacus software, BearingPoint has developed an innovative, future-oriented solution that integrates three essential functional areas onto one modular, high-performance platform: Enhanced Reporting: innovative functions for streamlining the reporting process Regulatory Analytics: regulatory business intelligence functionality for statistical analysis Regulatory Management: functionality for planning, monitoring and controlling supervisory KPIs 360 Reporting Enhanced Reporting Industrialization Regulatory Analytics Regulatory Management Analyse the impact Manage the impact Service Overview Abacus360 3

4 A major innovation of Abacus360 is the optimization of the reporting process in order to achieve a reporting at the push of a button. With the new Abacus software generation, the reporting process becomes fundamentally more transparent, efficient and quicker. The Analytics component of Abacus360 creates transparency for the growing and increasingly complex data. Based on standardized smart cubes for relevant risk types, Abacus360 offers a wide range of analysis capabilities enabling financial institutions to execute easily definable evaluations according to institution-specific, customized parameters and to clearly present results related to specific reporting dates, thus facilitating analysis of developments over longer periods of time. Moreover, Abacus360 provides new possibilities for the integration of regulatory KPIs within overall bank management with the conceptual offering of Regulatory Management. Through easily and flexibly defined scenarios, financial institutions can simulate changes to the regulatory KPIs during the acquisition of new business, the building up or elimination of portfolios, other planning and controlling measures as well as market changes. Abacus360 Reporting, Analytics and Regulatory Management Abacus360 complies with the requirements of the European Banking Authority s and ECB reporting frameworks as well as with the local requirements of national supervisory authorities. A standard interface facilitates the import of raw data, such as book and market values and partial results data, such as risk-weighted assets (RWA) and report results. The Abacus engine provides a wide range of calculation functions, including risk calculation according to the standard approach or internal ratings based approach (IRB) and capital adequacy calculations. By means of a user-friendly interface, the system provides a comprehensive functionality for data analysis, auditing, sign-off and generating reports and manual interventions at every step of the report generation process. Abacus360 provides standard reporting content for numerous jurisdiction and facilitates flexible integration of jurisdiction-specific requirements via the Template and the Rule. FIGURE: ABACUS360 INTEGRATES A COMPREHENSIVE, MULTI-JURISDICTIONAL REPORTING FUNCTIONALITY ONTO ONE PLATFORM Abacus360 platform Regulatory Reporting Valuations and Risk Functions Supervisory Reporting COREP FINREP Asset Encumbr. Funding Plans Statistical Reporting EZB Statistics Other Statistics Granular Reporting AnaCredit Input Approach (e.g. BIRD) National Reporting Flexible integration of country-specific requirements via Template and Rule Disclosure Disclosure according to Pillar lll EBA Stress Test Ad Hoc Reporting Other Pillar l ad-hoc requests Liquidity Risk Cashflow generation Liquidity progress review FRTB Interest change risk for trading and banking book Tied-interest balance Market Price Risk Value-at-Risk Valuations Credit Risk PD-adjusted valuation CVA and DVA calculation Analytical Credit-Value-at-Risk Accounting Fair Value of property loans BFA3 loss-free valuation CRR / CRD lv National Legislation SREP BRRD 4 Service Overview Abacus360

5 Enhanced Reporting An optimized reporting process The Enhanced Reporting component provides intelligent features to facilitate a streamlined reporting process: Validation for the definition and application of validation rules to ensure a user-specific, efficient and automated capture of high-quality and complete data, additionally secured through a comprehensive consideration of diverse data sources Correction Manager supports the easy, efficient and consistent entry of manual modifications across all reporting areas on the data input level Post Processing for the individual transaction processing, enables transactions to be modified on the data input level or new transactions still to be added after a processing run has been completed Complete Audit Trail for an efficient traceability of the rule-based, functional processing steps down to the initial input data level Time Slices for system status versioning and a chronological traceability of modifications Analytics The Analytics Components offers regulatory-specific business intelligence functionality, creating transparency through the growing amounts of increasingly complex data. The fundamental Analytics Components modules are: The Smart Cube Analyzer for the analysis of regulatory reporting calculations results across various ratios and dimensions The Template for individually designed and customized templates for internal and external reporting The Smart Cubes data structures designed according to risk-type enabling a functional view of the data The Smart Cube for designing and extracting specific data structures KPI Manager for monitoring regulatory key risk indicators (KPIs) 360 compliance with Abacus360 thanks to regulatory maintenance of the solution by BearingPoint Regulatory Management The Regulatory Management component covers a wide range of functions for planning and management tasks. This includes creating transparency surrounding the interdependencies between the different regulatory KPIs and facilitating an efficient definition of a variety of scenarios with a series of simulation parameters. The Data for the compilation of transactions (portfolios) for simulation purposes as well as for controlling and planning decisions The Data Modifier for rule-based modifications to existing data The Forecast Manager for forecasting calculations of significant regulatory KPIs including functionality for a free definition of critical change factors for portfolios, such as prolongations The Ad-hoc-Simulation for impact analyses of how changes to some report items may impact other report items and for determining predictions of how declarations from the development of regulatory KPIs may result in controlling measures Service Overview Abacus360 5

6 Abacus360 System architecture and technical functionality Abacus360 is an integrated, modular platform. The various components can be individually combined according to the specific needs of financial institutions. Abacus360 is characterized by high performance and scalability as well as significantly increased transparency and improved integration in banking processes. The crux of the new platform is a unified data model to ensure maintenance sustainability over the long-term, even under constantly changing framework conditions. Moreover, Abacus360 allows for multi-jurisdictional reporting and offers a wide range of regulatory business intelligence functions based on data mart structures (smart cubes). This elaborate interface concept facilitates Abacus 360 s smooth and flexible integration with different source systems. Validation Post Processing Smart Cube Analyzer Report Factory Business Workflow Engine Testing Time Slices Correction Manager KPI Manager Template Direct Function Access Calculation Engine Upgrade Data Data Modifier Data Model Balance Sheet Planer Workflow Abacus360 provides user-friendly features for the customization of workflows: The Dashboard with a variety of tools for easy and efficient planning and managing entire workflows for regulatory calculations and the generation of reports The Workflow for an easy and efficient definition and configuration of user-specific workflows for the report generation and for other report-related processes Engine + The X1 Rule Engine offers a robust, rule-based calculation engine. It is based on a logical data model defined in the user interface and is a functionally structured component model that can provide a complete history of all system artefacts and full transparency regarding dependencies: The Calculation for capturing business logic rules via the user interface and supporting flexible adaptations and enhancements to the complex rule sets for the regulatory report processing The Data Model for the definition of bank-specific tables and attributes via the user interface and their integration in the data model The X1 Engine is the new calculation engine generation, based on a logical data model, a functionally structured component model and rule-based regulatory reporting logic The Direct Function Access for separately calling-up certain functions from a processing via a service interface The Standardized Pre-processing enhancement of the reporting process by standard methods for streamlining the pre-processing, e.g. a multi-currency model for currency conversion 6 Service Overview Abacus360

7 Regulatory expertise, consulting & services BearingPoint is a leading management and technology consultancy with long-term expertise in the area of regulatory reporting. We work closely with regulators and actively contribute to the process of standard setting. BearingPoint is member of the XBRL Consortium along with other standardization bodies and works with supervisory authorities such as the ECB, EBA and EIOPA. We combine this regulatory expertise with our proven, reliable and future-oriented software solution suite and expert consulting capabilities as well as training seminars and managed services in the area of regulatory reporting. Customer support Abacus360 users benefit from comprehensive customer support services and platforms to provide information exchanges with BearingPoint and other users. Our customer support services include a telephone and hotline, our web-based Progress Ticket System (PTS) and a useful online service providing documentation such as release notes, information on release planning, downloads of software packages among other resources. Beyond these support structures, the Abacus360, Wiki and regular user groups provide numerous possibilities for current, informative and critical discourses between users and BearingPoint to collectively realize the best practices in relation to regulations and our product strategy. Why you should decide on Abacus360 Abacus360 places itself at the leading edge of RegTech. A turn-key software platform built with over 20 years of experience in regulatory reporting, Abacus360 doesn t just meet the needs of your organisation today, it pushes further to anticipate future trends in regulation by integrating comprehensive functionality for reporting, risk calculations and controlling regulatory KPIs onto one single, multijurisdictional, platform. The Enhanced Reporting component streamlines the reporting process and enables cost savings. In addition all of our Abacus products are available both as a traditional client installation and through the cloud as Software as a Service (SaaS). High and deep functional coverage, compliance with authorities, thought leadership in regulation Integrated platform for multi-jurisdictional reporting, unified data model, investment protection Innovative solutions along the Regulatory Value Chain Expertise Efficiency Innovation Contact Dr. Maciej Piechocki Partner maciej.piechocki@ bearingpoint.com High market coverage Large, stable, international customer base Holistic portfolio Software & services, implementation, consulting and support from one hand Reliability Trusted, transparent reporting platform, regulatory maintenance through BearingPoint BearingPoint Software Solutions GmbH Speicherstrasse Frankfurt am Main Germany Marketing/Sales Department: abacus@bearingpoint.com BearingPoint Software Solutions GmbH, Frankfurt/Main. All rights reserved. Printed in the EU. The content of this document is subject to copy right ( Urheberrecht ). Changes, cuts, enlargements and amendments, any publication, translation or commercial use for the purpose of trainings by third parties requires the prior written consent of BearingPoint Software Solutions GmbH, Frankfurt/Main. Any copying for personal use is allowed and only under the condition that this copy right annotation ( Urheberrechtsvermerk ) will be mentioned on the copied documents as well. Photo credits: Fotolia. SO_1043_EN Service Overview Abacus360 7

8 About BearingPoint BearingPoint consultants understand that the world of business changes constantly and that the resulting complexities demand intelligent and adaptive solutions. Our clients, whether in commercial or financial industries or in government, experience real results when they work with us. We combine industry, operational and technology skills with relevant proprietary and other assets in order to tailor solutions for each client s individual challenges. This adaptive approach is at the heart of our culture and has led to long-standing relationships with many of the world s leading companies and organizations. Our global consulting network of 9,700 people serves clients in more than 70 countries and engages with them for measurable results and long-lasting success. For more information, please visit: