finance reporting offering
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Regulatory & Financial Reporting OfferingJanuary, 2017
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Table of Contents
Copyright © 2017 Accenture All rights reserved.
Key Financial Reporting Process Challenges
Summary
Financial Reporting Process Capability Model
High Performance Financial Reporting Framework
Accenture Regulatory Reporting Offerings
Perspective – Financial Reporting Process Evolution
Financial Reporting Value Proposition
Financial Reporting Process Improvement Tactics
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3Copyright © 2017 Accenture All rights reserved.
With the new and the ever complex external reporting landscape, financial institutions are faced with a variety of challenges such as:
Consequently, institutions should consider strategic solutions that can effectively manage these associated costs by:
SummaryComplex financial reporting frameworks and enhancement process capabilities are being reconsidered across the financial services industry to address an evolving and dynamic regulatory environment.
• Increased costs to meet regulatory reporting requirements
• Data quality and sourcing issues impacting report accuracy
• Timely and inaccurate report outputs• Non-compliance costs and reputation risks
• Providing accurate and timely information to internaland external parties
• Increasing reporting transparency• Increasing data consistency and management
Accenture offers an internal and external Regulatory Reporting Framework with a wide variety of offerings to help clients address new and complex challenges with solutions that focus on data quality, data sourcing, and centralizing capabilities to help create efficiencies within the process.
4Copyright © 2017 Accenture All rights reserved.Note: Please see Legend slide for definition of acronyms
High Performance Financial Reporting FrameworkConsolidating frameworks, processes, and technology create efficiencies across reporting functions.
Reporting: External / Internal • Similar data can be used to populate reports
across the regulatory landscape and for internal purposes reducing redundant activities
Reporting: MIS / Shareholders • With more accurate reporting results,
financials can be produced faster
Reporting: Functions• Cross function transparency can be created
allowing for the dynamic integration of new systems
Brok
er D
eale
rAs
set M
anag
emen
tIn
sura
nce
Capi
tal M
arke
tsBankReporting Regulatory (External)
OCCFDICNCUA
FRBSECCFTC
CFPBFHFAFINRA
NAICESFSBasel
FunctionsRisk
TreasuryFinance
Human ResourcesControl
Line of BusinessExternal Data
(Market)Legal
Process: Workflow and Requirements• Straight through processing of information
across all systems to help streamline reporting needs
Support: Organization• Overarching controls and governance to help
manage risk, with well communicated roles and responsibilities
Support: Technology• Seamless user experience to investigate,
manage risk, and create new information and data
Benefits of Consolidation
Internal Management Information System (MIS) and ShareholdersInformational
Sr. ManagementOperations
Board Actuals Forecasting
Support Organization TechnologyWorkflow ModelingPolicy
TrainingRCSA
ProceduresResource Location
AuditBusiness Rules Performance
Metrics
Calculators AggregationWeb Services Reporting Engine
Technical Rules Batch Management
Process Workflows and RequirementsSourcing and
ValidationReconciliati
onAdjustment
sTransformat
ion DistributionData
Management
Investigation and AnalysisSecurity / Audit / Controls
5Copyright © 2017 Accenture All rights reserved.
Financial Reporting Process Capability ModelAccenture’s standardized regulatory reporting process capability model helps accelerate assessment and change. Core Workflows and Requirements Supporting Workflow
and Requirements
Note: Please see Legend slide for definition of acronyms
Level 1 Level 2 Level 3Level 3 – Sub-Category
Security / Audit / Control
Sourcing and Validation
Policy / Procedures
Quality Control
EntitlementsData Sourcing Controls
Retention and Archiving Validation Rules
Quality Assurance
SecuritySourcing
ControlsBusiness
RCSAException Tracking
SOXMetrics
Operations
Audit
Reconciliation
Break Thresholds
Research
Mapping to General Ledger
Cross Report
Resolution
Data Management
Data Quality
Metadata ManagementLineage andTraceability
Restatement
Data Governance
Data Approval
Controls
Data Accuracy
Rule Conformation
Datasets
Versioning
Report Preparation
External
Drill DownVariance Commentary
Internal
Data Mapping
Regulatory ThresholdsAttestation
Escalation CriteriaEscalation TrackingReport Submission
Capital Thresholds / Materiality
Adjustments
Transaction
Manual Upload
Adjustment Inventory
Adjustment Approval
Aggregated Data MaskingTechnical
Transformations
Model Definition /Enhancement
Pro Forma
Formulas
Error Resolution
Report Changes / Maintenance
Calculations
Derivation Rules
AggregationAggregation RulesModel GovernanceModel Approval
Derivations
Investigation and Analytics
CannedOperational Dashboard
Reports
Ad Hoc
Analytics
Performance
Market
Risk
Capital Management
Capital Results Narrative
Copyright © 2017 Accenture All rights reserved. 6
Key Financial Reporting Process ChallengesThe industry is facing three key challenges in regulatory reporting processes.
Accenture SolutionsChallenges• Predesigned regulatory reporting capability
model accelerating the assessment of risks and accuracy issues
• Preferred practices to clearly define organizational structures for regulatory reporting
Completeness and Accuracy of Report• Lack of data transparency • Undefined roles and responsibilities
• Straight through processing (STP) leveraging central data repository practices for populating reports
• Standardized metrics to track successful reporting processes and accurate data outcomes
Time to Report• Report requires multiple types of data • Poorly defined data requirements• Manual reporting processes • Evolving / changing regulatory environments
• Preferred practices to validate and reconcile upstream data
• Predefined categories of data quality issues • Prioritization methodologies to remediate data
quality issues
Data Quality Issues• Multiple report adjustments introduce issues• Poor understanding of data issues• No operating model to remediate issues
Copyright © 2017 Accenture All rights reserved.
Simplification and STP FocusIncludes the resolution of data quality issues, the development of key data and reconciliations, and the review of data feeds.
Perspective – Financial Reporting Process Evolution
Current stage of evolution in the Financial Services Industry
Increasing Value
Centralized system and services deployed alongside automated work queuing, prioritization and automated report population
Low visibility to key controls
Overlapping roles
Separate platformsLevel 1: Basics Simplification
and reconciliation
Consolidation of data aggregation achieves STP
Level 2: TransformationLevel 3: Improvement
Clearly defined roles
Full internal STP via complete integration
Level 4+: Transparency
Tailored data to identify broader trends and drivers
Insight gained allows risk containment and issue remediation
Data management structure helps record and communicate changes
Improve Controls and RiskOrganize Introduce / Enhance Technology
Efficiency and Cost Effectiveness FocusIncludes governance integration and automation of reporting. Analytics and metrics in place to help drive greater process efficiency.
As reporting capabilities mature the function changes from simply producing to creating dynamic reporting solutions.
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RenovateOperate Innovate
Copyright © 2017 Accenture All rights reserved.
Regulatory Reporting Offerings
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Financial Reporting Process Improvement TacticsAssessing the maturity of capabilities within the reporting process and system flow will help firms target key tactics for improvement.
Data Suppliers
Transaction Aggregation Calculations Reporting
Aggregation ReportingSystemFlow
Adjustment Transformation DistributionReconciliati
onSourcing / Validation
Variance Commentar
yReporting Process Attestation
Data Quality to improve the processing of data requiring manual intervention and adjustmentswhich impact accuracy
Data Sourcing to organize data requirements with clear documentation assisting with the remediation of data quality and populating reports
Process
System
User Tool Reduction to eliminate manual intervention (Microsoft Excel® files, access databases), creating transparency into data transformations and limiting multiple human touch points before report population
Process Monitoring to identify issues that create bottlenecks and other inefficiencies
Consolidate System Architecture to create Straight Through Processing of data
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Financial Reporting Value Proposition
Copyright © 2017 Accenture All rights reserved. Note: Please see Legend slide for definition of acronyms
Expected Outcomes ImpactEnhanced Analytics • Enhanced analytics on quality assurance, quality control, and key
issue areas• Advanced measurements of data processing
Traceability• Enhance the data governance and escalation processes• Improved data access and controls to allow proper entitlements
throughout systems• Identify incomplete or business rule discrepancies
Insight into Purpose and Use
• Faster service-level agreements (SLAs) and timing to report• Improve collaboration between reporting programs and the line of
business• Better define and communicate strategic improvements to the
reporting processOwnership • Clear ownership and responsibility between populating reports and
data providersControls • Reduce risk and manage reporting outcomes for accuracy
Decrease Time to Change • Improve timing to decision around changes• Quickly communicate changes across consumers and suppliers of
information Improve Data Quality • Improve timing for root cause analysis
• Proactive response to data issues vs. reactive fixes
Technology Architecture Design• Reduced estimating costs for architecture design and change• Identify stale and unused information• Quicker identification for the reuse of data vs. creating new data• Improve supplier feeds and streamline data flow removing manual
processing Staffing Improvements • Diversified organizational structure to improve cost to report
Reduce Regulatory Actions (e.g. MRIA/MRA)
• Documented source of information for key financial reports• Facilitate compliance (e.g. consent orders) with regulators
Improve Report Accuracy • Quicker enhancements to automate reporting and reduce manual intervention
Reduction of Manual Data • Quicker identification of sources of manual data• Improved accuracy and reduce adjustments
• Transparency into reporting outcomes and source of data• Reduction in risk due from manual processing Compliance
Automation
Regulatory Response
ReducedOperating Cost
Governanceand Oversight
Value Proposition
Benefits
10Copyright © 2017 Accenture All rights reserved.
Accenture Regulatory Reporting Offerings
User Tool Assessment Approach
CapabilityDesign and Data Sourcing
Regulatory Reporting Dashboard
Integrated Reporting Tool Set Implementation
Data Quality Management
Target OperatingModel and Governance
RegulatoryReporting VendorImplementation
Des
crip
tion
Develop an approach for the assessment of manual tools for determining a tactical and strategic elimination strategy.
Develop and design reporting processes and capabilities. Document key steps for data processing, populating reports and collecting key reporting data attributes.
Standard dashboard components measuring the effectiveness of data processing, improvement over time and tracking to key business reporting objectives.
Framework outlining the standard process, capabilities and technology components required to streamline reporting and centralize finance data for straight through processing.
Develop standard data quality management operating model (framework) for the identification, investigation, and resolution of data quality issues.
Create target operating model and governance structure for regulatory reporting capability to allow for clear roles and responsibilities, ownership, process documentation, and governance.
Support a client’s implementation of regulatory reporting tools through vendor selection, business and functional requirement gathering, tool configuration, and testing / go live support.• Increase
automation • Improve report
accuracy • Reduce manual
data
• Improve governance
• Increase data transparency
• Reduce risk • Improve time to
report
• Increase automation
• Improve report accuracy
• Improve data quality
• Reduce time to change
• Reduce manual data
• Increase automation
• Improve report accuracy
• Improve staff usage
• Reduce manual data
• Improve data quality
• Improve report accuracy
• Improve data quality
• Reduce regulatory actions
• Increase ownership
• Improve governance
• Reduce redundant processes and controls
• Increase automation and functionality
• Improve report accuracy
• Reduce manual controls
Accenture has developed a set of seven key regulatory offerings to tackle current challenges in regulatory reporting space.
Valu
e Pr
opos
itio
n
11Copyright © 2017 Accenture All rights reserved.
Legend
CFPB: Consumer Financial Protection BureauCFTC: U.S. Commodity Futures Trading CommissionESFS: European System of Financial SupervisionFDIC: Federal Deposit Insurance CorporationFHFA: Federal Housing Finance AgencyFINRA: Financial Industry Regulatory AuthorityFRB: Federal Reserve BoardMRA: Matters Requiring Attention
MRIA: Matters Requiring Immediate AttentionNAIC: National Association of Insurance CommissionersNCUA: National Credit Union AdministrationOCC: Office of the Comptroller of the CurrencyRCSA: Risk Control Self AssessmentSEC: U.S. Securities and Exchange CommissionSOX: Sarbanes-Oxley Act
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Regulatory & Financial Reporting Offering
Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Disclaimer This presentation is intended for general informational purposes only and does not take into account the reader’s specific circumstances, and may not reflect the most current developments. Accenture disclaims, to the fullest extent permitted by applicable law, any and all liability for the accuracy and completeness of the information in this presentation and for any acts or omissions made based on such information. Accenture does not provide legal, regulatory, audit, or tax advice. Readers are responsible for obtaining such advice from their own legal counsel or other licensed professionals.
About AccentureAccenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 394,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com
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