top of page

Managing Analytics Organization for the Best in Deliverables for the Organization in Revenue and Profitability

Guidance on Some of the Daily, Weekly, Monthly, Quarterly and Annual Reviews Needed for the Best in Decision Supports Deliverables to Drive Efficiency, Revenue and Profitability (Static, Enterprise, Online and Real-time)

 

  • Business and Portfolio Performance Reviews

    • Earnings performance

    • Business units performance

    • Investment performance

    • Operational performance

    • Process performance

    • IT performance

    • Marketing performance

      • Existing product performance

      • New product performance

  • Risk Profile Review (include Strategic, Market, Credit, Operational, Portfolio, Compliance, Marketing Risks)

    • Quantity of the risk

    • Quality of the risk

    • Aggregate risk

    • Direction of the risk

For the Analytics that came from Enterprise Risk Analytics, the deliverables here will be very familiar. These deliverables are very important to run successful and profitable companies including the darling of Wallstreet.

 

Many of the business leaders that value risk analytics as part of their successful businesses dedicate a block of time usually a week to two weeks to go through these reviews.

 

These business leaders make attendance mandatory and the attendance includes the leaders of the SBUs from across the world. 

 

Also many of the outputs from these deliverables produce the inputs to the three- and five- years strategic plans as the depth of these reviews cover the changing trend in areas that cover the shifts within the business portfolios with consequences for the company on why, where, when and how to grow, remain flat or exit based on:

  • Changes in competitive environment with consequences for the company

  • Changes in macro economy with consequences for the company

  • Changes in global economy with consequences for the company

  • Changes in political environment with consequences for the company

  • Changes in consumers behavior with consequences for the company

  • Changes in compliance requirements with consequences for the company

 

So here are some of these reviews at very high level. These include:

  • Capital Management Review

    • State of the company's capital

      • Current changes in the capital position of the company

        • Actual versus expected

        • Capital injection

        • Drivers of the changes in the movement in the capital component

      • Adequacy of capital

      • Risk to capital

      • Rating Agency capital requirements

  • Balance Sheet Composition Review

    • State of the balance sheet

      • Strength of earnings

      • On and off-balance sheet risks

  • Pricing Review

    • Trend in the products' pricing

      • Current quality of risk selection

      • Effectiveness of underwriting guidelines

      • Pricing trend in the industry

  • Underwriting Management Review

    • State of the company underwriting standards

      • Current quality of risk selection

      • Effectiveness of underwriting guidelines

  • Portfolio Management Review

    • State of the company portfolio management

      • Current changes in the portfolio

    • Asset quality

    • E.g. Credit Management reports

      • Loan watch lists

        • Structurally weak loans list

        • Overdraft list

        • Loan concentration

        • Past-due and nonaccrual

        • Rating reports

        • Loan trial balances

        • Large-dollar personal loans

        • Large-dollar commercial loans

        • Securitized loans

    • E.g. Underwriting reports

      • Customer watch lists

        • Ten Top customers with the highest loss ratio

    • Financial margin on the portfolio

    • Operating margin on hedged transactions

    • Renewal business

    • New business

    • Mix of business: new and renewal

    • Risk concentrations by customer

    • Risk concentrations by geographical location

    • Risk concentrations by product line

    • Product/ Portfolio Mix

    • Competition: Market share

    • Customer pricing pressure

    • Loss of key customers

    • Percent of high-yield customers

  • Asset Review

    • Securities allocation

    • Diversification

    • Total returns

    • Asset quality distribution

  • ALM Review

    • Market risk sensitivities

    • Interest rate sensitivity

    • Equity return sensitivity

    • Earnings at risk sensitivities

    • AL Mismatch

    • Pre-hedged versus post-hedged value

  • Reserving Review

    • State of the company reserves

  • Credit Risk or Counterparty

    • Counterparty recoverables

    • Counterparty insolvency

    • Unsecured counterparty recoverable

    • Counterparty assumed and ceded

    • Counterparty reduction in capacity

  • Liquidity Management Review

    • State of the company's liquidity

      • Liquidity adequacy

      • Current changes in the company liquidity

      • Ability to borrow

      • Existing liquid assets and for the immediate future

    • Earnings quality and quantity

    • Cash inflows and outflows on periodic basis

    • Distribution of assets and liabilities in terms of sector, maturity and quality

    • Possible failure of major providers of unsecured funding

    • Level of dependence on short- and long-term unsecured and secured funds

    • Dependency on synthetic and non-synthetic funding

    • Possibility of movements in Rating for the company

    • Possibility of movements in Rating for the competitors

    • Possibility of movements in Ratings for the counterparties

    • Possible market triggers and level of risk realization

    • Level of restrictions in transferring liquid assets between the business units and between the business units and corporate

  • Rating Agency Management Review

    • Previous Rating Agencies' concerns

    • Current Rating Agencies' concerns about the industry

  • Operations Review

    • Human relations

      • Number and percentage of staff leaving the company

      • Vacancy rates

      • Average salary increase versus plan

      • Employee fraud

      • Loss of key Individuals/teams

    • Underwriting process performance

    • Billings and collection

    • Information Technology

      • Systems Failure

      • Disasters, outages & disruptions

      • Help desk metrics

      • Security metrics

      • Project metrics

      • IT incidents/investigations

      • IT audit issues

    • Loss events

  • Process Monitor Review

    • Statistical Process Review

      • Variables control charts

        • Basic control charts

        • Time weighted control charts - Moving average

        • Multivariate control charts

        • Special purpose control charts

    • Attributes control charts

    • Cumulative sum control charts (CuSum)

    • Exponentially weighted moving average control charts (EWMA)

    • Modified control charts

    • Acceptance control charts

    • Chi-squared control chart

    • T-Squared control chart

  • External Changes Monitor Review

    • Changes in Macro economy with consequences for the company

    • Changes in Global Economy with consequences for the company

    • Changes in Political environment with consequences for the company

    • Changes in Consumer behavior with consequences for the company

    • Changes in Compliance requirements with consequences for the company

bottom of page