By continuing to use this site, you agree to our use of cookies. Read our Cookie Policy and our Privacy Policy for reference.
Risk assessment for a large bank
ING Bank partnered with a team comprising a senior data scientist, data scientist, and project manager to address operational and legal/regulatory risks crucial to their operations. Leveraging SAS Viya, they developed a robust tool for real-time risk monitoring and scoring, focusing on non-financial risks.
The solution includes a comprehensive pipeline for data analysis, scoring, and scenario simulations, enabling proactive risk management, informed decision-making, and resource allocation. By enhancing compliance and reducing operational disruptions, the system contributes to cost reduction and organizational resilience.
Services
Data Science
Project Length
2 Months
Client
ING
Our Planning Process
Operational and legal/regulatory risks are crucial considerations for businesses due to their potential to disrupt operations, damage reputation, and produce substantial financial losses. Operational risks can lead to costly downtime and loss of customer trust. On the other hand, legal and regulatory risks, including non-compliance with laws or changing regulations, can result in fines, legal battles, and tarnished reputations. Both operational, legal and regulatory risks emphasize the importance of strong risk management strategies to keep businesses running smoothly and protect against negative outcomes. By effectively addressing these risks, companies can maintain their operations, uphold their legal and ethical responsibilities, and ultimately sustain their long-term success. The goal of the project was to develop a tool for event aggregation, classification and expert based scoring of the operational risk events using control, issue and event data.
What we did for ING
Leveraging SAS Viya, we successfully conducted data preparation and model development to create a powerful tool designed to monitor and track the real-time risk scores across various divisions, specifically in the realm of non-financial risk.
Our solution encompassed a robust pipeline for exploratory data analysis, binning, weighting, and expert-rule-based scoring. It also offers the flexibility to define new metrics easily and conduct various simulations, allowing users to explore different scenarios comprehensively. This capability helps the organization to understand how different scenarios affect both the whole organization and individual divisions in specific detail.
Leveraging SAS Viya, we successfully conducted data preparation and model development to create a powerful tool designed to monitor and track the real-time risk scores across various divisions, specifically in the realm of non-financial risk.
Our solution encompassed a robust pipeline for exploratory data analysis, binning, weighting, and expert-rule-based scoring. It also offers the flexibility to define new metrics easily and conduct various simulations, allowing users to explore different scenarios comprehensively. This capability helps the organization to understand how different scenarios affect both the whole organization and individual divisions in specific detail.
Final Results
Implementing a system for tracking operational risk events and running simulations can yield several valuable outcomes for an organization:
-
The system allows for proactive identification and management of operational risks, reducing the likelihood of costly disruptions.
-
By running simulations and analyzing various scenarios, decision-makers can make informed choices that minimize risk and optimize performance.
-
Organizations can allocate resources more effectively by understanding where and how operational risks may impact different divisions or areas.
-
The system helps in staying compliant with legal and regulatory requirements, reducing the risk of fines and legal battles.
-
Cost Reduction: By avoiding operational disruptions and regulatory fines, the organization can save substantial amounts of money.
In summary, such a system can lead to improved risk management, compliance, and decision-making, ultimately contributing to the organization's resilience, sustainability, and financial health.