Building an Efficient and Compliant CCAR Modeling System
December 10, 2020
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Robust coding practices and streamlining the process and reduces delays and errors in model development and implementation for critical CCAR stress testing execution.
Case Study: Robust coding practices and streamlining the process reduced delays and errors in model development and implementation for critical CCAR stress testing execution. Complex and unreliable code, manual processes, and extensive back-and-forth with development teams made it difficult for a Top 20 bank to implement models required for the Comprehensive Capital Analysis and Review (CCAR), a federal stress-testing exercise. The existing environment resulted in delays, data issues and model revisions that put the bank at risk for non-compliance in submitting on time. Facing multiple pain points with that process, the bank tapped into our expertise and experience...
Bringing production quality methods and controls to the quarterly impairment allowance created a fully compliant allowance process that reduced cycle time and resource needs by 80%.
Case Study: Bringing production quality methods and controls to the quarterly impairment allowance created a fully compliant allowance process that reduced cycle time and resource needs by 80%. Several analyst teams at a Top 10 bank spent four weeks each quarter estimating the company's consumer loan impairment allowance, which represents capital to be set aside for expected losses on the bank's $100 billion loan portfolio. Manual, spreadsheet-based processes were labor-intensive and error prone, leading to delays and reduced confidence in the results. With these issues contributing to audit findings and potentially tens of millions of dollars in excess allowance, the...
Automation delivers higher accuracy and speed in $60 million in annual incentive payouts to telecommunication field technicians.
Case Study: Automation delivers higher accuracy and speed in $60 million in annual incentive payouts to telecommunication field technicians. Cumbersome manual processes caused errors and delays in distributing $5 million in monthly incentives at a major telecommunications firm, leaving operations field managers and technicians disappointed in an exchange that was intended to drive engagement and morale. Every month, four teams worked with multiple disparate spreadsheet tools to pull data and calculate incentives, an unwieldy and risky approach that took more than 45 days to process payments. Recognizing the need to streamline and improve this critical function, the firm turned to...
Architected data platforms provide a foundation for automated modeling and forecasting to reduce cycle times and ensure well-managed data inputs.
Case Study: Architected data platforms provide a foundation for automated modeling and forecasting to reduce cycle times and ensure well-managed data inputs. The model development team at a Top 10 bank was responsible for forecasting on a $100 billion loan portfolio, but development efforts were often stalled by the complexity in data, and created compliance issues in the process. We implemented a data platform for providing authoritative and high-quality data to streamline the model development process and ensure the bank stays compliant and well-managed. Case Study: Leveraging Data Infrastructure and Governance to Speed Model Development and Execution
Automated machine learning solutions drive better modeling results and a more controlled process in loss forecasting.
Case Study: Automated machine learning solutions drive better modeling results and a more controlled process in loss forecasting. A Top 10 bank relied on traditional statistics to forecast credit losses and make decisions based on those insights. Their processes were labor-intensive and complex, and as a result did not deliver insights to leadership quickly enough to drive decision-making. We reimagined this process to create a simplified platform based on extreme automation and machine learning to deliver more accurate results in half the time. We gave leadership the insights and confidence to take action. Case Study: Superior Forecasting Through Machine Learning
Automation through emerging tech drives streamlining, speed, and efficiency in the most complex critical financial processes.
Case Study: Automation through emerging tech drives streamlining, speed, and efficiency in the most complex critical financial processes. A Top 10 bank’s credit loss forecasting infrastructure was cumbersome and outdated. It took teams of analysts four months to execute their quarterly process, generating operational and regulatory risk for the bank. We established a best-in-class loss estimation system by redesigning the data and analytical processes to generate rapid, well-managed loss forecasts – cutting time and resource needs in half along the way. Case Study: Optimizing Business Processes Through Emerging Technology
Since its introduction in September 1987, Excel has been the go-to resource in an analyst’s toolkit due to its versatility and capacity to quickly translate complex formulas into illustrative tables and charts. Over the ensuing years, a typical financial services analyst would build elaborate, interwoven spreadsheets, simple models, assumptions and calculations, all in Excel, creating end-user computing (EUC) applications. And while these EUCs built the foundation for modern automation, generally speaking, they lacked traceability or documentation, making model adjustments challenging and presenting serious challenges for governance, risk and regulatory compliance functions.