Minimise and manage your banks exposure to risk by maintaining a high level of awareness of your exposure. Being aware of your tolerance to credit, capital and liquidity risk in relation to the levels set by APRA is essential to maximising profits while managing risk.
As you know, the banking sector is very tightly regulated and those regulations have become stricter since the global financial crisis. Staying on top of compliance and understanding your banks current risk profile is essential to maintaining financial stability, however you can do more than just monitor historical risk.
Until now traditional reporting involved getting I.T. to run an “end-of-month” report that was then manually manipulated in a spreadsheet. This required many work hours, concentration and was open to interpretation. There is also more exposure to errors due to the manual process.
A better way to monitor and manage risk is to use a highly visual and interactive Analytics Dashboard to track regulatory compliance. Dials and graphics allow you to instantly identify areas of non-compliance at a glance. Early detection of risk can save you and your bank financial and reputation loss.
We gather all risk and compliance related data from many different sources and display it in an easy-to-use, interactive Analytics Dashboard. Automating this process can not only free up many work hours for your staff, but it can help shed light on what is potentially a dark area of your business.
Areas of risk you can track on your Analytics Dashboard:
- Credit: likely risk of financial loss if a customer does not meet their obligations to repay debt.
- Liquidity: the risk of your bank being unable to fund assets and meet obligations when due.
- Market: changes in the market and how they may impact earnings for the bank.
- Operational: risk of loss from inadequate internal processes, systems, staff or external forces.
- Financial: risk associated with the bank meeting its financial obligations.
- Equity: potential for financial loss resulting from movements in equity values.
- Insurance: errors in calculating expected cost of insurance policies, events and insurance claims.
- Sustainability: risk of financial and reputation loss due to failure to identify and address existing and emerging sustainability issues including environmental, governance or social issues.
- Reputation: risk to earning potential due to negative public opinion resulting from a loss of reputation or trust in the banks brand.
- Strategic: potential loss that may arise from perusing an ineffective corporate strategy.
- Compliance: risk of regulatory or legal sanction, reputation or financial loss, due to a failure to observe compliance obligations.
- Governance: rules, policies, processes and regulations outlining the banks capacity, management and administration.
- Development: all risks associated with promoting and communicating products and services to existing and new customers.
Instead of looking through last months risk data in a hard to read spreadsheet, you could have an up-to-date high-level overview of all identified areas of risk for your bank. Charts and dials highlight problem areas by representing your exposure to risk via the traffic light system (green-amber-red) so that you know at a glance if there is a problem that needs immediate attention.
This data is current, not a month old, and you would be made aware of any potential risk to your business as it happens rather than in a few weeks time.
When needed you can drill down into different areas of interest and identify risk not only by category and date, but also by location making it easier for you to identify areas that need your attention.
You also have the option to generate regular reports that can be automatically distributed to relevant staff. You have the flexibility of any time reporting as well as having regular reports show up in your inbox.
Meeting regulatory and compliance obligations is essential to the successful running of your bank. Knowing your exposure to risk allows you to protect your members and staff from excessive risk. It is essential for your bank to accurately measure your risk profile so that you can balance risk and reward, increase financial growth opportunities and mitigate potential financial and reputation loss.
Turn your existing data into ‘Smart Data’ and generate actionable knowledge in an interactive, useful and easy to share way.
What is Smart Data?
Smart Data is data from which insights and patterns have been extracted by intelligent algorithms. Collecting large amounts of numbers and statistics brings little insight without a layer of added intelligence… that’s how Business Intelligence can answer your business questions.
Make Dashboard Analytics the framework of your risk strategy.
We are focused on solving business problems where complex data is involved. We deliver business intelligence solutions using intuitive visualisations to support data driven decisions through data discovery and self-service analytics.
Satsumas have worked with financial, pharmaceutical, utility, retail and mining companies and understand the challenges you need to overcome.