CSC Risk Management Reporting
The crisis in the financial market shows that the existence of economical interrelations and the existence of internal and external risks are based on a lack of information. Most businesses do not know that.
Each business collects, calculates and consolidates data for the internal control in risk management or accounting. There are several different software solutions (Prophet, Igloo) to serve this purpose. The data will be entered, evaluated and consolidated in Excel.
These solutions are very user-friendly, but also risky and often require manual processing which increases the error risk. The lack of traceability of data modifications both in value and the identity of the person having initiated the modification does not provide auditing acceptability. This particularly applies to the modification of complex formulas or macros which, in cases of doubt, do not allow the tracing of the result of individual calculations.
The press reported on a German real estate funding company which used an Excel-based risk management and missed a pressing need for funds of 15 billion Euros. On this basis, the company’s management must not take any business policy-related decisions or disclose such information to the capital market.
The CSC Risk Management Reporter (CSC RMR), a web-based, centrally installed solution which can be used decentralised and worldwide provides a traceable, quality-assured reporting of business-relevant data. The system is used across industries and not limited to financial service providers alone. Nevertheless, it was developed on basis of the reporting requirements of Basel 2 and Solvency 2.
The special business benefit results from the auditing acceptability of the processed data and processes which can be traced using a record history. This applies to all processes resulting in entries or required activities as part of plausibility checks.
CSC RMR has external creation flexibility which even provides transparency for forms with more than 3,000 lines. The implicit formula engine ensures the accurate application of the stored mathematical formulas. CSC RMR allows the mapping of the group hierarchy across the reporting-relevant departments, businesses and countries and controlling the full top-down processing of forms.
Three different validation phases ensure that a message appears in case of a variance of defined values which should not be accepted without additional and logged validation. CSC RMR offers these features that format reports in almost any form as text or file. The reports can be updated by both CSC and customer staff.
The practical use has shown that the tool is not only used in the financial services segment, but also in all industries and businesses that need to have a quality-assured reporting and risk management due to their size.
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