Challenges

The client wanted Crisil to support their capital market initiatives across the pillars of the bank's Global Markets. Crisil deployed expert teams to lead business consultancy, perform regulatory reporting, establish well-designed build-operate-transfer (BOT) model, and manage run-the-bank programs, thereby meeting the bank’s strategic offshoring objectives and ensuring a smooth transition process.

Crisil Approach

Finance and Accounting

• Sole consulting partner for the Capital Markets CFO team with ccomprehensive ownership of the STR function globally including establishing and maintaining the process. Established centralized, cross-LOB systems and processes for P&L and Product Control activities including regulatory reporting, PL calculation and Front or back reconciliation.
  

Market and pricing data quality control

• Standardised firmwide yield curves and pricing data, established business controls on curve management, set up capabilities for structured products on e-trading platforms, transformed margin and collateral process, set up process for margin optimisation.
  

Credit risk

• Streamlined data sourcing and ran daily reporting controls via production of key credit risk metrics, such as counterparty exposure under SA and IRB, issuer aggregations and guarantees / collaterals accounting, while enhancing policy and processes for adjustments and exception management.
  

Organizational Data validation

• Developed risk controls and supported the data validation process across the trade life cycle, including trade booking, settlements, third-party contracts, front office, risk and finance, implementing a standard view of risk, pl and trading dataUnified risk engine delivery.

Crisil Impact
 

• Structured trade review with an accuracy of more than 99.95%, with MTM impact of more than USD 79M
  
• Match rate increased to >99% thus reducing the capital requirement for high RWA deals
  
• Process automation led reduction Root Cause Analysis time by ~ 60%
• 24% reduction in production lead time of MI reporting
• Reduced monthly reporting cycle time by 33%

Questions

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