Development of the First Operational Executive Management Report for a Banking Team Focused on Credit Risk Management

In 2023, a leading global bank recognized the need for a comprehensive operational executive management report (EMR) to enhance oversight and strategic planning within its credit risk management division. This initiative emerged from the increasing complexity of credit decisions, an expanding client base, and the necessity for timely, data-driven insights to support executive decision-making.

Challenges & Considerations

– Data Integration: Consolidating data from over a dozen disparate sources, including human resources systems, loan processing systems, client information systems, financial statement spreading systems, regulatory systems, and real estate systems.

– Data Accuracy: Ensuring the accuracy and consistency of data across multiple systems.

– Timeliness: Developing a process that could produce the report on a monthly basis within tight timelines.

– User Adoption: Designing a user-friendly report and encouraging the executive management team to leverage the new insights provided.

The primary goal was to develop a model that could:

Develop a robust monthly EMR encompassing over 40 key performance indicators (KPIs).
Provide clarity on operational frameworks, including volumes of decisions, headcount leverage, resourcing, organizational structure, management/oversight, timeliness of decision-making, and location strategy.
Equip leaders with new insights previously inaccessible, enabling timely planning and response to shifts in activity and performance.

Approach & Implementation

Stakeholder Engagement: Conducted interviews and workshops with executive managers to understand their information needs and operational pain points.
KPI Selection: Identified over 40 KPIs covering critical operational areas, ensuring actionable insights for executive decision-making.
Data Integration Framework: Developed an ETL framework to extract, transform, and load data from various source systems, ensuring accuracy and consistency.
Report Design: Created a user-centric EMR featuring intuitive visualizations and clear narratives to highlight key insights and trends. Included interactive elements for deeper analysis.
Validation and Testing: Conducted rigorous validation and testing phases with cross-functional teams to ensure data accuracy and report reliability.
Training and Rollout: Provided training sessions for the executive management team, incorporating feedback to refine the report.

Outcomes

– Enhanced Operational Insights: Provided executives with unprecedented visibility into operational metrics, enabling identification of trends, bottlenecks, and areas requiring attention.

– Informed Decision-Making: Enabled executives to make informed decisions on resourcing, organizational adjustments, and strategy shifts, driving forward operational objectives.

– Proactive Management: Facilitated a proactive approach, allowing leaders to respond swiftly to shifts in activity and performance.

– Foundation for Future Data Strategy: Marked the first step in a broader data strategy aimed at leveraging data analytics for continuous improvement and strategic planning.

The development of the first operational executive management report was a landmark achievement for the bank’s credit risk management team. It enhanced executive oversight and decision-making while setting the stage for future data-driven initiatives. This project exemplifies the transformative power of leveraging data and analytics to drive operational excellence and strategic success.