How Acuity Transformed Credit Risk Analytics for 20 Banks

Credit Risk Analytics & Reporting Solutions

A global data consortium of 20 development banks, led by the Chairman and Chief Risk Officer, faced critical challenges in risk data management. Issues with data quality, accuracy, availability, and redundancies, along with SLA adherence, hindered effective operations. To address these, Acuity Knowledge Partners implemented comprehensive credit risk analytics solutions. This resulted in automating 100% of the report generation process, achieving a 40% cost reduction, and ensuring 100% elimination of vulnerabilities. The solution streamlined data management, improved accuracy, and ensured timely reporting, providing the consortium with robust risk insights and operational efficiency.

Automated 100% of the report generation process
Reduced cost of ca. 40%
Ensured 100% elimination of vulnerabilities

CLIENT

Chairman and Chief Risk Officer of a global data consortium of 20 development banks
Key challenges were:
- Data quality, accuracy and availability
- Data redundancies
- Lack of adherence to SLAs

OUR APPROACH

Deployed a team of experienced technology subject matter experts to help manage a credit risk database (i.e. probability of default [PD], recovery rate and migration metrics) of more than 10,000 counterparties and 25,000 contracts through a four-stage approach
Stage 1 - Hosting: A dedicated server hosting governed by Acuity Knowledge Partners’ (Acuity) security, disaster recovery and contingency protocols within Acuity-affiliated data centers
Stage 2 – Maintenance and support: Provided assistance on maintenance and enhancement of the application and database in addition to addressing business queries
Stage 3 – Enhancement: Leveraged Acuity’s experience in managing consortiums to add value while taking over the data management and enhancement
Stage 4 – Data Verification and reporting: Implemented two-factor authentication with data anonymisation and automated the annual report-generation process (rule-based automation) with minimal maintenance

IMPACT DELIVERED

Ensured 100% automation in the annual report-generation process with minimal maintenance
Reduced cost by ca. 40% in TOM by establishing an off-shore dedicated team of experts
Ensured 100% elimination of vulnerabilities by developing a robust, secure and user-friendly application

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