Introduction
A leading global financial services firm sought to overcome challenges by providing a comprehensive view of risk across all regions, business lines, customers, products, and risk profiles. The lack of a single data source resulted in multiple breaks, reconciliations, and operational overheads, necessitating a solution for aggregating risk measures and achieving an intra-day view of overall firm risk.
Analyzing the Problem
- Lack of a single source of data for risk aggregation
- Operational overheads due to multiple breaks and reconciliations
- Need for comprehensive aggregation of risk measures
Initial Challenges
- The absence of a unified risk data solution
- Inability to monitor risk across business units
- Complex limit monitoring and breach alerting
Our Solution
Wissen's techno-functional experts devised an elegant solution to address these challenges:
- Design of a risk data lake for periodic risk measure notifications
- Utilization of Apache Spark for aggregating risk calculations
- Development of breach monitor component for limit threshold checks
- Implementation of messaging systems for component decoupling
Key Results Achieved
- Enhanced monitoring of risk across business units
- Simplified limit setting and breach monitoring through GUI
- Establishment of a single source of data with a consistent data dictionary
- Facilitating control reports and drill-down checks
Conclusion
Through collaboration with Wissen, the financial services firm successfully streamlined firm-wide risk management by implementing a unified data solution. The Risk Data Lake, powered by Apache Spark technology, enabled efficient aggregation of risk measures across diverse business units. The Breach Monitor component provided real-time monitoring of limit breaches, enhancing risk oversight and control. With a single source of data and a consistent data dictionary, risk managers gained the ability to generate comprehensive control reports and perform drill-down checks based on outliers. Overall, the solution empowered the firm to achieve a holistic view of risk, enabling informed decision-making and improved risk management practices.
