The document discusses enterprise risk and finance solutions from Oracle. It defines enterprise risk and finance as integrating traditional accounting, financial management, risk management, compliance, and reporting on a common decision-making platform. It then describes four sales plays within enterprise risk and finance: finance modernization, risk adjusted performance management, enterprise risk and capital adequacy, and agile financial services analytics. Finally, it provides an example customer implementation for the finance modernization sales play.
4. Financial Services IBU Solution Sets
Solution Enterprise Risk and Finance
Set
Enterprise Risk
and Finance
Risk Adjusted Enterprise Risk Agile Financial
Plays
Sales
Finance
Performance & Capital Services
Modernization
Mgmt Adequacy Analytics
Basel III -
Accounting Profitability Finance & Risk
Capital
Modernization Management Data Warehouse
Adequacy
Points
Entry
World Class
Financial Close Risk Adjusted Liquidity Risk
Business
& Reporting Performance Management
Intelligence
IFRS Planning and Interest Rate
Compliance Strategy Risk
in FS Optimization Management
Financial Crimes
& Compliance
5. Focus Area
Finance Modernization
Delivering
Visibility, Efficiency
and Control to the • Accounting Centralization and Compliance
operational finance • General Ledger Consolidation
process in a highly • Financial Close Management
Automated
manner, allowing the • Reporting and Analytical Transparency
Finance • Disclosure Analytics
Organization to • Data Management and Control
Focus on higher
value partnerships
with the business
6. Focus Area
Risk Adjusted Performance Management
Enable Complete and • Multidimensional Profitability
Comprehensive
Insight into • Unit Cost Development
Performance and • Funds Transfer Pricing
Profitability. Deliver • Economic Capital Attribution
key business
measures Enterprise • Management Reporting and Analytics
Wide to make better • Planning and Forecasting
business decisions
7. Focus Area
Enterprise Risk and Capital Adequacy
Enable a Holistic
View of Risk and • Regulatory Capital Compliance
Compliance leading
to Superior Decision • Market, Credit, Operational Risk
making, Unifying • Stress Testing and ICAAP
Risk • Liquidity and Interest Rate Risk
Identification, Quanti
fication, Stress • Risk Reporting and Analytics
Testing and Capital • Financial Crime and Compliance
Planning processes
across the
Enterprise.
8. Enterprise Risk and Finance
Industry Best Practices Architecture
Source Accounting and Finance Intelligence
Transactions
Accounting General Close/Capital Finance
Hub Ledger Mgmt Warehouse
General General Consolidation
Ledger Ledger GL
(THICK) (THIN) Portal
Plan & Procurement
Sub Ledgers
Operational Expenses
Forecast
Data Daily Assets
Accounting
Rules Average Close & Payables
Balance Disclosures
Dashboards, Re
ports, Ad Hoc
Performance and Risk
Data Staging Risk & Results
Performance Area OLAP Analysis
Core and
Trading Account & Enterprise
Systems Customer Performance Performance
Management
Mgmt Ledger
Enterprise
Risk Risk Alerts &
Transactions
Management Exception Based
Management
Technology/Hardware Master Data Mgmt Controls, Governance
9. Financial Services IBU Solution Sets
Enterprise Risk and Finance
Sales Plays Lead Economic Bill of Materials Customers
Pillar Buyer
Finance Apps CFO • ERP (Accounting Hub & GL) • Many for selected components e.g. FAH,
Modernization (ERP) • OFSAA-EPM– PFT / PFT BI GL, HFM
• Hyperion -HFM, C&D Mgt. • Implementing full stack
• OFSAA-ERM (Rec Framework, (OFSAA+eBusiness ERP+EPM) – RBS
Hedge Management) • Implementing Operational Finance) –
• Edge – DRM, OPA, GRC Nomura, Scotiabank
• TIAA CREF – (completing GL, OFSAA and
BI.
Risk Adjusted Apps CFO • OFSAA-EPM – PFT, FTP, PFT BI, • Implementing – NAB (FTP & “Management
Performance (OFSAA) ALM BI, BSP Ledger”)
• OFSAA-ERM – ICAAP Analytics, • Implementing – PNC, TIAA CREF, Fifth
Management Economic Capital and/or Basel II Third, USAA
• EPM – HPCM, Planning, B/S • Live – US Bank
Planning, Hyperion Strategic • Many OFSA 4.5 clients for PA, TP (and to
Finance, Scorecard, DRM, BI a lesser degree RM)
Applications
Enterprise GBU CRO or • OFSAA-ERM, ALM, Credit, • Implementing – PNC (Credit Risk, Basel II)
Risk & Capital (OFSAA) GM Treasury Operational, Market, Liquidity, • Implementing – JP Morgan (Liquidity Risk),
Basel II,ICAAP ANZ (ALM for Liquidity Risk)
Adequacy
Agile Financial GBU CIO • FSGBU – FSDW / OFSAAI, Rec • Implementing – BNY Mellon
Services (FSDW) Framework, Basel II Analytics • Implementing – RBS
• Apps – PFT BI, ALM BI
Analytics
• EPM – OBIEE, ESSBASE, DRM
21. TIAA CREF
Sales Play – Finance Modernization
COMPANY OVERVIEW SOLUTIONS
a Fortune 100 financial services organization that is • Oracle General Ledger and Financial Acctng
the leading retirement provider for people who work in Hub
the academic, research, medical and culture fields. • Oracle Financial Services Analytical
Headquartered in NYC, TIAA CREF serves 3.7 million Applications (Data
active and retired employees participating at more Model, Profitability, Profitability Analytics)
than 15,000 institutions and has $453 billion in • Oracle Business Intelligence
combines assets under management (as of 12/31/10). • Oracle Planning and Strategic Finance
• Net Income: US$ 1.405 billion (2010)
• Employees: 7,2000 EXPECTED BENEFITS
• Single source of consolidated and detailed
finance and management information
MISSION/OPPORTUNITIES
• Efficient and centralized accounting and
• Reduce complex, redundant and costly processes general ledger
prohibiting timely and efficient financial • Comprehensive best practice engines and
close, detailed management information and intelligence for multi dimensional profitability
reporting analytics
• Provide world class configurable solution(s) to the • Enterprise strength and ease of use business
institution for developing performance metrics with intelligence providing transparency and
the necessary transparency to drivers and results actionable data.
• Investment in technologies that will support • Provide technologies and solutions that can
corporate strategy for growth scale for performance and the expected
aggressive growth of the institution.
22. Swedbank
Customer Profile Business Problems
Activities: Retail Banking
Geography: Regional, •Old Backoffice systems (ATLAS) was being
replaced (Calypso), including Accounting Engine
Nordics Europe
•Old GL could not be immediately
Annual turnover decommissioned (basis for reporting)
~ 1.000 Billion € •New GL Structure/Architecture
•Need for new integrated platform for Accounting
Historically being a group of individual & Analytics
(independent) Savings Banks, the largest ones •Not adequately prepared for future sources of
being merged and listed transaction data
•Straight through processing with clear status
Keeping administration for the rest of Savings
tracking
Banks
Business Requirements Project Info
Feed multiple CoAs Status: Live since June 16th 2008
Implementers: Functional setup: Cap Gemini
Support transition from old to new system (no Project Management: Local Partner
immediate cross-over)
FAH functional: Oracle consulting
Keep separate ledger for separate Savings Banks Technical: Oracle Consulting + Customer
Being able to enter Manual Journals
Centralize and store Accounting rules
23. Nomura Holdings – INTERNAL USE ONLY
Sales Play – Finance Modernization
COMPANY OVERVIEW SOLUTIONS
Nomura Holdings is the parent company of Nomura • Oracle Peoplesoft Financials and Expense
Securities, Japan's leading investment bank and brokerage Management
house. The company performs trading, equity and bond • Hyperion Financial Management
underwriting, research, and mergers and acquisitions • Hyperion Profitability & Cost Management
(M&A) advisory services. It also makes private equity and • Hyperion Financial Data Quality Management
venture capital investments. Nomura's largest segment is • Financial Analytics
domestic retail, which provides investment consulting and • Supporting Oracle Technology
brokerage services to consumers in its home market..
Nomura Holdings has operations in more than 30 countries.
In 2008, Nomura acquired the European and Asian
operations of Lehman Brothers, as part of it’s goal to EXPECTED BENEFITS
become a leading Global Investment Bank Objective of Global Financial Architecture(GFA):
• Assets Under Mgt ¥24.7 trillion(FY 2010) • To build the platform to allow for strategic
• Total assets ¥36,692,990 million (FY 2010) decision making through timely and dynamic
• 35,630 employees reporting to executive level personnel
- Daily, accurate management information
MISSION/OPPORTUNITIES - Allow faster adoption to social and
• Become a world class competitive financial services institutional changes
group • Achieve efficient management and cost
• Create Change to contribute to the development of reduction by consolidating multiple IT assets
capital markets and generate growth opportunities and disparate business processes globally.
• Act as a bridge between Asia including Japan and - Cost reduction by server consolidation
Europe and the United States
24. National Australia Bank – INTERNAL USE ONLY
Information Analytics Platform Transformation
Sales Play – Information management, ERM
COMPANY OVERVIEW SOLUTIONS
National Australia Bank is a financial services • Oracle Financial Services Analytical
organisation with over 40,000 people, operating more Applications (Profitability, FTP, ALM Data
than 1,800 branches globally. NAB operates major Model, Profitability Analytics, Corporate and
financial services franchises in Australia, as well as Retail Credit Risk, Basel II, Basel II Analytics)
businesses in New Zealand, Asia, the United
Kingdom and the United States. Each brand is • Oracle Financial Accounting Hub
uniquely positioned but built on a common • Siebel UCM
commitment to providing quality products and
services, fair fees and charges, and relationships built EXPECTED BENEFITS
on the principles of help, guidance and advice. • Support core banking transformation by
• Net income A$4.58 billion (2010) realigning activity execution
• Total assets A$685 billion (2010)
• Provide support for support for multi-branding
and rapid product manufacture independent
MISSION/OPPORTUNITIES of brand
• Assisting exploitation of NextGen Banking Platform • Establish a holistic perspective across
• Drive cost reduction through Process enterprise service focuses – risk
simplification, Technology simplification,Reduction , finance, operational support
in reconciliation and control effort, Reduction in cost • Reconcile information across the required
of change dimensions
• Enhancing individual business capabilities • Leverage industry maturity and development
• Mine the cross enterprise services opportunities to reduce complexity and speed reaction
(particularly Risk , Finance, Capital Management time to market opportunities and regulatory
and Customer Insight) needs
25. Royal Bank of Scotland – INTERNAL USE ONLY
FiRST - Finance and Risk Systems Transformation
Sales Play – Finance Transformation, ERM
About the RBS FiRST Program
• FiRST is a transformation exercise which RBS
has embarked upon with an aim to bring
unification & greater transparency to finance &
risk processes within the bank
• The bank with the success of this program aims
to present a coherent picture to the regulator
(FSA – Financial Services Authority) in the UK
across its risk & finance numbers
• The bank has hired a senior-level executive to
own the unification of risk and finance
• RBS has done an extensive evaluation for
finance, consolidation & risk systems as the Anatomy of the Deal
bank is looking at a player who can invest in
this proposition as a partner & support a Tier1
Split across LOB’s (Net LF), approx. % of deal for each Oracle LOB
global player such as RBS
OFSAA (FSGBU) 27%
• The bank’s aim is to do as minimal ERP
customizations as possible and deploy the out-
ERP II 26%
of-box functionality proposed as part of the
Oracle solution stack Apps EPM 22%
BI 5%
• The bank intends to complete the Technology 20%
transformation exercise by FY 2013
Total 100%
27. Enterprise Risk and Finance
Global Contacts
ERF Global Solution Manager Asia Pacific
Stuart Houston Yadhunath Srinivasan
Stuart.houston@oracle.com yadhunath.srinivasan@oracle.com
+852 6016 5399 +65 8112 7152
Based in Hong Kong Based in Singapore
The Americas Europe, Middle-East, Africa
Bill Greene Stephen Skrobala
bill.greene@oracle.com stephen.skrobala@oracle.com
+1 973 960 4796 +34916312801
Based in New York Based in Madrid, Spain
Objectives for the Operational Finance process1. Reduction of excel models providing ‘Single source of the truth’2. Increased controls, monitoring and elimination of redundancies and standard processes3. Less data collection and number crunching, allowing more analysis / scenario modeling work 4. Adaptable to rapid changes in the business environment5. Clarity of roles, responsibilities and associated organization structures Opportunities for the Institution:1. Elimination of “time honored” tools supported by specialized resources2. Reduction of staff, especially in non-finance areas3. Consolidation of finance resources in central support functions4. Re-skilling of resource toward analytics and business driven modeling5. Adoption of standard tools and processes6. New job role definition and reporting relationshipsSource: Deloitte
To help financial institutions grow, manage risk, and optimize shareholder value, Oracle delivers a comprehensive, integrated suite of financial services analytical applications for enterprise performance management, including profitability management, funds transfer pricing, pricing management, and balance sheet planning. Now more than ever, financial institutions, their regulators, and shareholders are focused on the need to measure and meet risk-adjusted performance objectives, price products to reflect their true risk, and better understand how the institution is impacted by threats to liquidity, capital adequacy, and exposure to market rate volatility. As Regulators continue to drive best practices adoption, the big idea behind an integrated risk and finance platform is the notion of being "compliance centric" . where business processes, analytic data models, application functions, and policies are designed with accounting, regulation, and risk requirements built in at the transaction level. In a compliance-centric institution, a single set of data, policies, analytics, and rules is used to trigger appropriate risk decisions and regulatory reporting, financial entries, and indicators that demonstrate the use of required control procedures.Key to success for a financial institution is a comprehensive strategy that combines well-designed technology architecture, a suite of analytical applications for risk-aware decision making, and a commitment to raise the analytical orientation of its people toward fact-based decision making.
In the post-crisis landscape, effective risk management should be considered a matter of using the information derived from analytical risk assessment to make better strategic decisions and drive growth appropriately. In this way, risk management becomes a proactive, ongoing initiative tasked with creating value in addition to protecting assets and guarding against failure.Oracle Enterprise risk management solutions span all areas of risk, including credit, market, operational, liquidity, fixed asset, business and reputation risk, enabling institutions to manage all their risk and provide necessary feeds for compliance-based reporting. The capabilities of Oracle for risk management help financial institutions address compliance issues such as Basel II that demand a close operational synergy between finance and risk functions. Integrating risk and finance in financial services centers around four pillars:1. A financial center of excellence with a strong analytical orientation and a set of shared services supporting the institution across all significant lines of business2. Integrated data and information model, with a single "golden source," and ownership and custody of information that is used for finance, strategy, risk, and compliance3. A unified/common technology architecture and set of open standards and services for transaction and data integration, policy management, analytics, metrics, reporting, collaboration, and internal control across core enterprise financial management functions, both inside and outside the organization4. An ability to adapt to change . in accounting standards, regulations, and business requirements
The Oracle ReferenceArchitecture provides comprehensive support for all business events emanating from transaction systems, across the Accounting, Analytical, BI and Reporting landscape.Data resides where relevant to support business processes with ability to link the various levels of data without replicating data or processes to reduce redundancy and improve efficiencyProcesses e.g. currency revaluation are run in application(s) where it is native and only once, where relevant, with the ability to utilise the resultant information across the system in order to reduce customizationShared referential data (dimensions, hierarchies, rates)Pre-defined and consistent validations across data movements within the environmentNo contention between reporting and processingEfficient data structures for enhanced performance