The rapid report rationalization framework for finance and risk reporting

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The rapid report rationalization framework for finance and risk reporting

How to increase insights from reporting with fewer resources

Finance and risk departments struggle with preparing a large amount of reports which include mostly overlapping information. That is due to an organically grown number of stakeholders, KPIs and technologies being unaligned. This results in higher costs, as well as wrong and incoherent insights. In this article, we introduce the rapid report rationalization framework: a tested approach for rationalizing and standardizing finance and risk reporting.

Cutting costs in reporting chains requires rationalization and standardization

Finance and Risk departments are facing repetitive manual processes when creating reports. This manual work is leading to higher costs and a larger number of FTE being involved but not necessarily leading to more insights nor better business performance. This includes that, for example, employees are often performing countless reconciliations and are running several reports of which the added value can be questionable.

By integrating multiple reports into a streamlined and automated solution, time will be freed up to perform more insightful work. This will shift colleagues from spending time on repetitive manual processes, such as data processing, to performing analyses that result in information about the performance of the business. That said, report rationalization is able to increase the time spent on value adding activities such as advanced analytics, forecasting and managing inherent risks of the banking book pro-actively.

However, legacy reports additionally create ambiguity and high implicit costs. Not only non-compliance but also wrong decision making and high FTE demand increase the pressure on the business-as-usual organization. Getting the fundamentals right by harmonizing reports and cutting costs has proven to be a promising driver for upgrading reporting practices.

Figure 1- Stages of upgrading reporting practices

Introducing Deloitte’s rapid report rationalization framework

In order to kick-off report rationalization swiftly, we have developed a framework which is twofold. We combine a standardized approach with rapid prototyping in which we migrate and harmonize a number of reports within a timeboxed period. Hereby, we deliver tangible and quick results while at the same time delivering a longer term oriented roadmap.

The key differentiator of the rapid report rationalization framework is that it pairs theory with practice and the external drive to reduce costs. We base this approach not only on implementation planning and roadmap design but simultaneously build a proof-of-concept of a rationalized subset of reports. This blueprint can be reused and offers organizations a way forward to kick-start the implementation and rationalization process.

The framework consists of the following four phases:

  1. Investigate: identify and map report landscape
    We interview multiple colleagues, both report users and report creators, to get an overview of the challenges and rationalization potential within a predefined topic.
  2. Phase out and eliminate: draft a strategic report rationalization plan
    The implementation plan offers a strategic approach towards reducing reports and the underlying processes and data flows with a clear cost and FTE reduction target in mind.
  3. Standardize and migrate: rapid report prototyping
    Based on the rapid report intake, a number of reports will be selected which will be consolidated into a single one employing automation and modern BI technology.
  4. Harmonize: towards an integrated plan for rolling out report rationalization
    The strategic plan for report rationalization will be rolled out organization-wide.

During steps two and three a prototype will be built on a readily available enterprise platform. This includes the BCBS #239 compliant collection, aggregation and provisioning of data within a dashboarding or BI environment in a modular way.

Achieve first results within 10 weeks

We are employing an agile way of working to instantiate Deloitte’s rapid report framework to not only deliver an executable strategic plan but also a working report prototype. A small scale team can deliver first results in a timeboxed period of six to ten weeks depending on the size of the organization.

Questions? Get in touch with us today!

The Center of Excellence for Regulatory Reporting (CoE) is a virtual team centralising Deloitte’s Regulatory Reporting knowledge and helping clients to do responsible business by helping them with their regulatory reporting. In order to effectively support our banking clients in this complex regulatory environment, the CoE is founded to (i) stay on top of new developments in the field of regulatory reporting to support timely and appropriate data-driven-reporting solutions at financial institutions; (ii) support financial institutions by leveraging expert view of our international network on ad hoc queries regarding their regulatory reporting data and processes; and (iii) have teaming of professionals to combine expert knowledge in the field of regulatory reporting with strong data and implementation skills to ensure fit-for-purpose teams.

For more information, please contact us via COERegulatoryReporting@deloitte.nl

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