Dear SAP Banking Community members,
Some days ago I had a very interesting conversation with a colleague about the “effort” necessary for implementing Bank Analyzer.
In my opinion, a common mistake when we evaluate Bank Analyzer is thinking that BA is “just” a tool for generating regulatory deliverables (Basel II-Regulatory Capital or IFRS-Accounting).
With Bank Analyzer, we try to capture on an integrated data-model (Financial Database), all the economic events which have, or can have, an impact on the Market and Credit Risk that the Bank is exposed to. And from it, evaluate the processes which generate Profit and Liquidity.
Capturing those economical events and represent them in an integrated data-model is not an easy task, it requires a relevant amount of business and technical knowledge. Additionally, many Transactional Banking Systems don’t have the integrated vision of SAP, which makes more difficult to extract the necessary operational data for feeding the integrated risk data-model of BA.
But, what’s the pay back of all this effort?
We’re moving to an economic world in which efficiency is not a competitive advantage, it’s the key to survival.
Efficient management requires looking carefully at the utilization of the critical resources, and the most critical resources of a Bank are Capital for hedging risk, and Liquidity for responding to its liabilities.
That’s exactly what Bank Analyzer is about; with all the data provided by the Financial Data Base, the Bank’s managers have the necessary information for looking forward and evaluate the potential risks before they happen.
Taking decisions before their competitors, managing their assets and liabilities before the economic events of this globalized world affect their value.
Does this worth the effort?
In my opinion it does.
Looking forward to read your opinons.
Kindest Regards.
Ferran.
Some days ago I had a very interesting conversation with a colleague about the “effort” necessary for implementing Bank Analyzer.
In my opinion, a common mistake when we evaluate Bank Analyzer is thinking that BA is “just” a tool for generating regulatory deliverables (Basel II-Regulatory Capital or IFRS-Accounting).
With Bank Analyzer, we try to capture on an integrated data-model (Financial Database), all the economic events which have, or can have, an impact on the Market and Credit Risk that the Bank is exposed to. And from it, evaluate the processes which generate Profit and Liquidity.
Capturing those economical events and represent them in an integrated data-model is not an easy task, it requires a relevant amount of business and technical knowledge. Additionally, many Transactional Banking Systems don’t have the integrated vision of SAP, which makes more difficult to extract the necessary operational data for feeding the integrated risk data-model of BA.
But, what’s the pay back of all this effort?
We’re moving to an economic world in which efficiency is not a competitive advantage, it’s the key to survival.
Efficient management requires looking carefully at the utilization of the critical resources, and the most critical resources of a Bank are Capital for hedging risk, and Liquidity for responding to its liabilities.
That’s exactly what Bank Analyzer is about; with all the data provided by the Financial Data Base, the Bank’s managers have the necessary information for looking forward and evaluate the potential risks before they happen.
Taking decisions before their competitors, managing their assets and liabilities before the economic events of this globalized world affect their value.
Does this worth the effort?
In my opinion it does.
Looking forward to read your opinons.
Kindest Regards.
Ferran.
No comments:
Post a Comment