An optimally aligned IT architecture for credit risk controlling is becoming increasingly important for business entities, because ongoing regulatory requirements demand a high degree of flexibility in data management. Key figures must be provided in a timely manner and with a high degree of granularity. Supervisory authorities also expects consistency among the figures from risk, accounting and reporting. In the current low-interest phase, it is also important to reduce run-the-bank and change-the-bank costs through the use of efficient technologies and to tap synergy potentials. Approaches such as data lakes, cloud computing, in-memory databases, analytics and deep learning have found their way into the financial services industry. They change the IT architecture and help to reduce system complexity.
KPMG has combined the auditor’s deep regulatory expertise with many years of experience in transformation management. We create planning security – also for your transformation in credit risk controlling. We support you in deriving implications from internal and external requirements and bundle them into target scenarios. Based on this, we carry out an assessment with regard to efficiency potentials as well as investment needs. We ensure that you achieve your project goals in deriving your target vision and subsequently putting it into operation, and we support you throughout the entire project life cycle:
KPMG provides you with transparency through quantitative and qualitative benchmarking: for the current coverage of regulatory requirements, the structural and process organisation, the technology stack and the functional and IT costs of your credit risk architecture.
Target vision development
After a stakeholder analysis, KPMG records your requirements. Together with you, we derive the target architectural picture with alternative solutions. KPMG supports you in this decision-making process with regulatory and technical experts and shows you the courses of action. We bring the experience we have gained in many years of auditing and transformation to bear on the development of objectives and help you select the standard software that is right for you, for example, from Ab Initio, FIS, IBM, Informatica, Misys, Moody’s Analytics, Oracle, SAP, SAS or Wolters Kluwer. In addition, we show options that emerge from open source developments, such as Apache Spark, HBase as well as Apache Hadoop. Based on a predefined catalogue of criteria tailored to your strategic goals, you then select the IT architecture that is optimal for your target vision.
Partner, Financial Services
KPMG AG Wirtschaftsprüfungsgesellschaft
Director, Financial Services
KPMG AG Wirtschaftsprüfungsgesellschaft
Initialisation and transformation planning
Based on the target vision, KPMG prepares the scope statement, the project proposal and a detailed work plan with you. KPMG provides structured process and estimate models to set up the transformation using agile development methodology or based on the waterfall model in such a way that you achieve your project goals in the planned time frame and with the planned quality. Based on our project experience, we define the project governance and project organisation together with you. With the help of KPMG’s own 3PM programme and project management methodology, the requirements are derived from standard market process models, such as those provided by the Project Management Institute (PMI).
Design and test implementation
In the design phase, KPMG describes the regulatory, functional and non-functional requirements of your credit risk controlling solution. Thanks to our close cooperation with the ECB and our audit and project experience, current regulatory developments and market standards, for example, based on Basel III, BCBS 239, CRR/CRD IV and the KWG (Kreditwesengesetz [Banking Act]), are comprehensively addressed in the design phase.
KPMG structures the test phase with a stringent procedure, starting with the definition of a test concept that includes test phases, iterations and quality gateways. We define the test steps and specify the criteria for the technical acceptance in the User Acceptance Test (UAT). We support efficient test execution with our experience in test automation. In addition to the cost-benefit analysis, KPMG helps you select the appropriate tool with a predefined catalogue of criteria that can be adapted to your needs. Our expertise with common tools such as JIRA, HP ALM and HP UFT, as well as Tricentis Tosca, is another important building block in this phase and enables a smooth handover into operations.
Contact us for a no-obligation discussion, a workshop or to carry out an analysis for your institution or division. Our experts are happy to assist you.