BCR%20/%20Erste%20Group - PowerPoint PPT Presentation

View by Category
About This Presentation
Title:

BCR%20/%20Erste%20Group

Description:

P&L Item Calculation Rule. Extracted (source systems) Transfer Pricing ... Romania, Turkey, UK ... a Market Risk calculation engine from Loxon, based ... – PowerPoint PPT presentation

Number of Views:58
Avg rating:3.0/5.0
Slides: 23
Provided by: gabrielse
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: BCR%20/%20Erste%20Group


1
(No Transcript)
2
(No Transcript)
3
BCR / Erste Group Complex Solution for
Profitability Management Risk-Adjusted Capital
Allocation SORIN MINDRUTESCU-SOUTH EASTERN
EUROPE APPLICATIONS SALES MANAGER Sorin.Mindrutesc
u_at_oracle.com
4
Agenda
  • Who is BCR?
  • Profitability Solution
  • Risk-Adjusted Capital Allocation Solution
  • Benefits Challenges

5
Who is BCR?
  • The largest commercial bank in Romania
  • Bank assets 9 billions EUR
  • 25,1 from total assets in market
  • The bank's network includes 375 units
  • 12.000 employees
  • Around 4 millions customers (Retail Corporate)
  • Erste paid 3,75 billions EUR for 61,88

6
Agenda
  • Who is BCR?
  • Profitability Solution
  • Risk-Adjusted Capital Allocation Solution
  • Benefits Challenges

7
BCR Business Problems
  1. Organizational and product profitability
    measurement missing, inaccurate or inconsistent
  2. Inability to identify profitable customers
  3. Inability to understand customer relationships
    and what drives their profitability
  4. Difficulty in dispersing critical business
    intelligence to key decision makers throughout
    the organization
  5. Diverse measurement systems produce conflicting
    results
  6. Cannot align the actions of employees with profit
    opportunities

8
OFSA Solution
  1. Organizational and product profitability
    measurement missing, inaccurate or inconsistent
  2. Inability to identify profitable customers
  3. Inability to understand customer relationships
    and what drives their profitability
  4. Difficulty in dispersing critical business
    intelligence to key decision makers throughout
    the organization
  5. Diverse measurement systems produce conflicting
    results
  6. Cannot align the actions of employees with profit
    opportunities

9
Oracle Financial Services Solution
10
Multi-Dimensional Profitability
11
PL Statement
PL Item Calculation Rule
Interest Income
Extracted (source systems)
Interest Expense
Extracted (source systems)
Transfer Credit
Transfer Pricing
Transfer Charge
Transfer Pricing
Net Interest Income
Performance Analyzer
Commissions
Extracted (source systems)
Allocated Expenses
Performance Analyzer
Profit
Performance Analyzer
12
Project History
  • Oracle team Romania, Turkey, UK (EMEA)
  • Duration around 12 months, almost 800 man/days
    (Oracle effort)
  • Products used
  • Oracle Database
  • OFSA
  • OFDM, PA, TP
  • Oracle Discoverer
  • Oracle Portal

13
Agenda
  • Who is BCR?
  • Profitability Solution
  • Risk-Adjusted Capital Allocation Solution
  • Benefits Challenges

14
BCRs New Requirements
  • Calculate the capital for major risks
  • Credit Risk
  • Operational Risk
  • Market Risk
  • Allocate the capital on banks Line of Business
  • Calculate RAPM indicators (Risk Adjusted
    Performance Measurement)

15
Oracle Proposal
  • Extend the OFSA / Profitability Solution and
    include the business rules for capital
    calculation, for Credit Operational risks
  • Implement a Market Risk calculation engine from
    Loxon, based on VaR approach
  • Allocate capital on Line of Business, using OFSA
    / Performance Analyzer
  • Calculate RAPM indicators using OFSA /
    Performance Analyzer

16
Project Phases
17
Key Success Factors
  • Executive management support
  • Proactive management of scope
  • Understanding the solution is evolutionary
  • People knowledge

18
Agenda
  • Who is BCR?
  • Profitability Solution
  • Risk-Adjusted Capital Allocation Solution
  • Benefits Challenges

19
BCRs Benefits
  • Better timely business decisions
  • Support for business strategy
  • Strong architecture for future
  • People experience

20
Projects Challenges
  • Profitability model Ownership
  • Dedicated team
  • Data quality
  • Organisational changes
  • Acceptance of results !!!

21
Q

A
22
(No Transcript)
About PowerShow.com