oracle erf overview v4
DESCRIPTION
TRANSCRIPT
Enterprise Risk & FinanceIndustry Solution
Version 4
© 2011 Oracle Corporation – Proprietary and Confidential
Stuart Houston
Vice President, Financial Services Industry Business Unit
© 2011 Oracle Corporation – Proprietary and Confidential
Enterprise Risk and FinanceDefinition
The integration of traditional accounting and financial management, financial performance and control, risk management and compliance and reporting functions on a common decisioning platform.
Enterprise Risk and Finance (Solution Set)
Finance Modernization (Sales Play)
• Operational Finance• Performance Mgt• Integrated ERP & Analytics
EPM
ERP GBU
Risk Adjusted Performance Management(Sales Play)
• Profitability & Performance Management
• Planning & Forecasting (incl. B/S)
EPM
APPS
GBU
Enterprise Risk & Capital Adequacy
(Sales Play)
• Liquidity/Basel III & IRR• Capital Adequacy - Basel II,
Economic Capital• Operational Risk
GBU
Tech
Agile Financial Services Analytics
(FS Data Management Sales Play)
• Data Warehouse• Banking Analytics
Transformation
GBU
EPM
FSI Solutions – Enterprise Risk & FinanceSales Plays
ERP Tech
Financial Services IBU Solution SetsEnterprise Risk and Finance
Enterprise Risk and Finance
Finance Modernization
Accounting Modernization
Financial Close & Reporting
IFRS Compliance
in FS
Risk Adjusted Performance
Mgmt
Profitability Management
Risk Adjusted Performance
Planning and Strategy
Optimization
Enterprise Risk & Capital Adequacy
Basel III - Capital
Adequacy
Liquidity Risk Management
Interest Rate Risk
Management
Financial Crimes & Compliance
Agile Financial Services Analytics
Finance & Risk Data Warehouse
World Class Business
Intelligence
Sal
es
Pla
ysE
ntr
yP
oin
tsS
olu
tio
n
Set
• Accounting Centralization and Compliance• General Ledger Consolidation• Financial Close Management• Reporting and Analytical Transparency• Disclosure Analytics• Data Management and Control
Focus AreaFinance Modernization
Delivering Visibility, Efficiency and Control to the
operational finance process in a highly Automated manner, allowing the Finance
Organization to Focus on higher
value partnerships with the business
• Multidimensional Profitability• Unit Cost Development• Funds Transfer Pricing• Economic Capital Attribution• Management Reporting and Analytics• Planning and Forecasting
Focus AreaRisk Adjusted Performance Management
Enable Complete and Comprehensive
Insight into Performance and
Profitability. Deliver key business
measures Enterprise Wide to make better business decisions
• Regulatory Capital Compliance• Market, Credit, Operational Risk• Stress Testing and ICAAP• Liquidity and Interest Rate Risk• Risk Reporting and Analytics• Financial Crime and Compliance
Focus AreaEnterprise Risk and Capital Adequacy
Enable a Holistic View of Risk and
Compliance leading to Superior Decision
making, Unifying Risk Identification,
Quantification, Stress Testing and Capital Planning
processes across the Enterprise.
Enterprise Risk and FinanceIndustry Best Practices Architecture
Accounting and Finance
Performance and Risk
AccountingHub
General Ledger(THICK)
Accounting Rules
GeneralLedger
General Ledger(THIN)
Daily Average Balance
Close/Capital Mgmt
Consolidation
Plan & Forecast
Close & Disclosures
Data Staging Risk & Performance
Results Area
Account & Customer
Mgmt Ledger
Transactions
Enterprise Performance Management
Enterprise Risk
Management
Performance
Risk
Source Transactions
Intelligence
Dashboards, Reports, Ad Hoc
OLAP Analysis
Alerts & Exception Based Management
Portal
Core and Trading Systems
OperationalData
Su
b L
edg
ers
FinanceWarehouse
GLProcurement
ExpensesAssets
Payables
Technology/Hardware Master Data Mgmt Controls, Governance
Sales Plays Lead Pillar
Economic Buyer
Bill of Materials Customers
Finance Modernization
Apps (ERP)
CFO • ERP (Accounting Hub & GL)• OFSAA-EPM– PFT / PFT BI• Hyperion -HFM, C&D Mgt.• OFSAA-ERM (Rec Framework,
Hedge Management) • Edge – DRM, OPA, GRC
• Many for selected components e.g. FAH, GL, HFM
• Implementing full stack (OFSAA+eBusiness ERP+EPM) – RBS
• Implementing Operational Finance) – Nomura, Scotiabank
• TIAA CREF – (completing GL, OFSAA and BI.
Risk Adjusted Performance Management
Apps (OFSAA)
CFO • OFSAA-EPM – PFT, FTP, PFT BI, ALM BI, BSP
• OFSAA-ERM – ICAAP Analytics, Economic Capital and/or Basel II
• EPM – HPCM, Planning, B/S Planning, Hyperion Strategic Finance, Scorecard, DRM, BI Applications
• Implementing – NAB (FTP & “Management Ledger”)
• Implementing – PNC, TIAA CREF, Fifth Third, USAA
• Live – US Bank• Many OFSA 4.5 clients for PA, TP (and to a
lesser degree RM)
Enterprise Risk & Capital Adequacy
GBU (OFSAA)
CRO or GM Treasury
• OFSAA-ERM, ALM, Credit, Operational, Market, Liquidity, Basel II,ICAAP
• Implementing – PNC (Credit Risk, Basel II)• Implementing – JP Morgan (Liquidity Risk),
ANZ (ALM for Liquidity Risk)
Agile Financial Services Analytics
GBU (FSDW)
CIO • FSGBU – FSDW / OFSAAI, Rec Framework, Basel II Analytics
• Apps – PFT BI, ALM BI• EPM – OBIEE, ESSBASE, DRM
• Implementing – BNY Mellon• Implementing – RBS
Financial Services IBU Solution SetsEnterprise Risk and Finance
Analytics
Oracle Financial Services Analytical Applications Infrastructure
InfrastructureArea
Analytical Applications
Reconciliation
Asset Liability
Management
Fund Transfer Pricing
ProfitabilityManager
Balance Sheet
Planning (CF)
Liquidity Risk Management
Stress Testing
Finance Financial Management
Financial Accounting
Hub
General Ledger
Financial Management
Disclosure Management
Workforce Planning
Balance Sheet
Planning (UI)
Capital Asset Planning
Planning Financial Analytics
ALM Analytics
Profitability Analytics
Hedge Analytics
Data Quality
Metadata Management Framework
Data Model
Components are part of the Oracle Financial Services Analytical Applications Infrastructure Product
Computations and Rules Framework
Mart Management Framework
Security and User
Administration
Advanced Analytical
Infrastructure
Oracle BI EE
Date Relationship Management
Oracle UPK Fusion Middleware
Oracle Product Mapping
Open Systems Platform - Oracle Database, Exadata and Exalogic
Supporting Solutions
Hedge Management
EssbaseGovernance,
Risk & Compliance
© 2011 Oracle Corporation – Proprietary and Confidential
PerformanceManagement
CustomerInsight
Governance& Compliance
RiskManagement
Treasury Risk
Credit Risk
Governance and ComplianceRegulatory Compliance (Financial Crime)
Channel Insight
Analytical CRM
Anti-Money Laundering
Trading ComplianceBroker Compliance
Fraud DetectionOperational Risk
Retail Credit Risk
Corporate Credit Risk
Portfolio Analytics
Marketing Analytics
Service Analytics
Channel Usage
Channel Performance
Economic Capital
Regulatory Capital
Liquidity Risk Stress Testing
Economic Capital Advanced (Credit Risk)
Operational RiskEconomic Capital
Performance Management and Finance
Accounting Hub
Activity-Based Costing
ConsolidationProfitability
Oracle Financial Services Analytical Applications
Budgeting and Forecasting
Hedge ManagementIFRS 9 – IAS 32/39
ICAAP
Customer Profitability
Stress Testing
Asset Liability Management
Market Risk
Basel II
Retail PortfolioRisk Models and Pooling
Funds Transfer Pricing
Loan Loss Forecasting Pricing Management
RAPM
Balance Sheet Planning
Know Your Customer
Reconciliation
© 2011 Oracle Corporation – Proprietary and Confidential11
Uni
fied
Anal
ytica
l Met
adat
a
Building BlocksShared Components across Applications
FINANCIAL SERVICES ANALYTICAL APPLICATIONS DATA MODEL
FINANCIAL SERVICES BUSINESS INTELLIGENCE
DataSources
Reports Alerts Dashboards Embedded
Purpose Built Engines Common Tools Business Rules Stochastic Modeling
Common Objects Common Dimensions Pre-Integrated/Extensible High Volume
FINANCIAL SERVICES ANALYTICAL APPLICATIONS FRAMEWORKS
© 2011 Oracle Corporation – Proprietary and Confidential
Uni
fied
Anal
ytica
l Met
adat
a
Building BlocksShared Components across Applications
FINANCIAL SERVICES ANALYTICAL APPLICATIONS DATA MODEL
FINANCIAL SERVICES BUSINESS INTELLIGENCE
DataSources
Reports Alerts Dashboards Embedded
Purpose Built Engines Common Tools Business Rules Stochastic Modeling
Common Objects Common Dimensions Pre-Integrated/Extensible High Volume
FINANCIAL SERVICES ANALYTICAL APPLICATIONS FRAMEWORKS
ASSET|LIABILITY
MANAGEMENT
BALANCE SHEETPLANNING
PROFITABILITY & FTP
MANAGEMENT
BASEL II
REG CAPITAL
CUSTOMER
INSIGHT
© 2011 Oracle Corporation – Proprietary and Confidential
Application-Specific Processing Area Results AreaStaging Area
Analytical Calculations
Cash Flow Engine
Data Model
Results for consumption
Common input area
for analytical
apps
Oracle Financial Services Analytical ApplicationsHigh Level Process Flow
© 2011 Oracle Corporation – Proprietary and Confidential Slide 14
Application-Specific Processing Area Results AreaStaging Area
Profitability
Funds Transfer Pricing
Asset Liability Management
Economic Capital
Liquidity & ICAAP
Basel II
Profitability Analytics
General Ledger
ALM Analytics
Market Risk Analytics
ICAAP Analytics
Oracle Financial Services Analytical ApplicationsHigh Level Process Flow
Products
(instruments)
Other
Infrastructure and Data Model
Common Cash Flow Engine
© 2011 Oracle Corporation – Proprietary and Confidential Slide 15
Financial Service Analytics Application Data Model
Staging Processing Data Marts
Common Staging Area App-specific processing
Shared ProcessingTables
App-specific result tables
Common Metadata
Facts Dimensions
Product Processors
Transactions
Ledger
COA
Product
Org
Customer
Exposures
Time Series Data (Rates, Indicators, risk factors etc)
Display Codes/Master tables
Master Data
ALM
FTP
PFT
MR
CR
OR
aCRM
Basel II
Instruments (29)
LedgerStat Account
Summary Tables
Common Dimensions, Hierarchies, Master Tables
COA
Product
Org
Customer
ALM MR
CR OR
aCRM
Basel II
Campaigns
Time Series Data (Rates, Indicators,
risk factors etc)
GRC
ExposuresT2T
Shared output tables
Profitability
Instruments Tables1. Current Accounts2. Savings Accounts3. TD Contracts4. OD Credit Lines
Accts5. Loan Contracts6. Credit Cards7. Mortgages8. Leases9. Mortgage Backed
Securitization10. Bills Contracts11. LC Contracts12. Guarantee13. Mutual Funds14. Money Market
Contracts
15. Mortgage Offset Accounts
16. Futures Contracts17. Options Contracts18. Repo-Contracts19. Fct Swaps20. Forex Contracts21. Break Funding22. Borrowing23. Forward Rate
Agreement24. Insurance25. Investment26. Annuity27. Trusts28. Retirement
Accounts29. Other Services
© 2011 Oracle Corporation – Proprietary and Confidential
© 2011 Oracle Corporation – Proprietary and Confidential Slide 17
The Case for Platform and PerformanceLiquidity Risk
• New mandates like Basel III are driving need for on-demand answers
• Global events or crises have near instantaneous impact
• Banks need to calculate stressed results in minutes not hours
• Contingency funding strategies need to be iteratively tested in a practical timeframe
Regulatory Capital
• Reporting is stressful and time consuming with little time for analysis
• Performance bottlenecks leave little margin for error
• Demand for additional submissions with modified assumptions and calculations
• Demand for advanced analytical practices like stress testing and what-if analyses
Profitability
• Tighter controls, laws limiting bank fees and slower revenue growth driving need for efficiency and cost controls
• Need for on-demand view of costs and profitability – move beyond monthly reporting requirements.
• Need for faster and more granular review of product performance
• Need to quickly response to market shifts and changing rates.Senior executives are left scrambling to bridge key limitations in
• Performance & Scalability• Responsiveness• Simulation & What-If Capabilities
© 2011 Oracle Corporation – Proprietary and Confidential Slide 18
Extreme Performance in Financial Services
Oracle Profitability Manager to execute 172 allocation rules across 250 million accounts+ 1 billion transactions Reduction from 48 hrs to 4 hours and 45 minutes.
Oracle Basel II for Regulatory Capital Calculations on Exadata Database Machine X2-2 executing Risk-Weighted Asset Calculations On 65 million exposures in only 1 hour and 29 minutes
Oracle Liquidity Risk Management on Exadata Database Machine X2-2 Business-as-usual liquidity gaps for 370 million cash flows 65 million accounts in just 69 minutes. Stressed liquidity gaps in only 10 minutes.
Oracle Basel II Solution in the Leaders’ Quadrant for
2005, 2006
Celent Group ranks Oracle Basel II as the North
American Leader in Basel II
Tower Group regards Oracle OFSAA as a specialized
and well architected platform
Forrester regards Oracle Reveleus as one of the top
”purpose build” GRC applications
Oracle Financial Services Analytics Highly Commended
in The Banker’s 2006 Technology Awards
Financial Insights regards Oracle as one of leading
operational risk vendors
Tower Group regards Reveleus as the “Crown Jewel” of
i-flexsolutions
Chartis Research ranks Oracle OFSAA among the top
10 Ops Risk vendors globally
Celent ranks Oracle OFSAA as one of the top 3 Ops
Risk vendors worldwide
Industry Recognition
Customer and Analyst Credentials
Representative Customers (300+ Globally)
© 2011 Oracle Corporation – Proprietary and Confidential Slide 19
Enterprise Risk and FinanceMarquee Wins – FY10 / FY11
• BOM – Apps, GBU, EPM, BI, Tech
• BOM – Apps, EPM, BI, Tech
• BOM – GBU, Apps (FAH), BI
• BOM – GBU, Apps
• BOM – GBU, Apps
• BOM – GBU, Apps • BOM – Apps, GBU
• BOM – GBU
© 2011 Oracle Corporation – Proprietary and Confidential Slide 20
COMPANY OVERVIEW a Fortune 100 financial services organization that is
the leading retirement provider for people who work in the academic, research, medical and culture fields. Headquartered in NYC, TIAA CREF serves 3.7 million active and retired employees participating at more than 15,000 institutions and has $453 billion in combines assets under management (as of 12/31/10).
• Net Income: US$ 1.405 billion (2010)• Employees: 7,2000
MISSION/OPPORTUNITIES• Reduce complex, redundant and costly processes
prohibiting timely and efficient financial close, detailed management information and reporting
• Provide world class configurable solution(s) to the institution for developing performance metrics with the necessary transparency to drivers and results
• Investment in technologies that will support corporate strategy for growth
SOLUTIONS• Oracle General Ledger and Financial Acctng
Hub• Oracle Financial Services Analytical
Applications (Data Model, Profitability, Profitability Analytics)
• Oracle Business Intelligence• Oracle Planning and Strategic Finance
EXPECTED BENEFITS• Single source of consolidated and detailed
finance and management information• Efficient and centralized accounting and
general ledger • Comprehensive best practice engines and
intelligence for multi dimensional profitability analytics
• Enterprise strength and ease of use business intelligence providing transparency and actionable data.
• Provide technologies and solutions that can scale for performance and the expected aggressive growth of the institution.
TIAA CREFSales Play – Finance Modernization
SwedbankCustomer ProfileActivities: Retail BankingGeography: Regional, Nordics EuropeAnnual turnover~ 1.000 Billion €
Historically being a group of individual (independent) Savings Banks, the largest ones being merged and listedKeeping administration for the rest of Savings Banks
Business Problems
Business RequirementsFeed multiple CoAs
Support transition from old to new system (no immediate cross-over)
Keep separate ledger for separate Savings Banks
Being able to enter Manual Journals
Centralize and store Accounting rules
Project InfoStatus: Live since June 16th 2008Implementers: Functional setup: Cap Gemini Project Management: Local Partner FAH functional: Oracle consulting Technical: Oracle Consulting + Customer
• Old Backoffice systems (ATLAS) was being replaced (Calypso), including Accounting Engine
• Old GL could not be immediately decommissioned (basis for reporting)
• New GL Structure/Architecture• Need for new integrated platform for
Accounting & Analytics• Not adequately prepared for future sources of
transaction data• Straight through processing with clear status
tracking
COMPANY OVERVIEWNomura Holdings is the parent company of Nomura
Securities, Japan's leading investment bank and brokerage house. The company performs trading, equity and bond underwriting, research, and mergers and acquisitions (M&A) advisory services. It also makes private equity and venture capital investments. Nomura's largest segment is domestic retail, which provides investment consulting and 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 become a leading Global Investment Bank
• Assets Under Mgt ¥24.7 trillion(FY 2010)• Total assets ¥36,692,990 million (FY 2010)• 35,630 employees
MISSION/OPPORTUNITIES• Become a world class competitive financial services
group• Create Change to contribute to the development of
capital markets and generate growth opportunities• Act as a bridge between Asia including Japan and
Europe and the United States
SOLUTIONS• Oracle Peoplesoft Financials and Expense
Management• Hyperion Financial Management• Hyperion Profitability & Cost Management• Hyperion Financial Data Quality Management• Financial Analytics• Supporting Oracle Technology
EXPECTED BENEFITSObjective of Global Financial Architecture(GFA):• To build the platform to allow for strategic
decision making through timely and dynamic reporting to executive level personnel
- Daily, accurate management information- Allow faster adoption to social and
institutional changes• Achieve efficient management and cost
reduction by consolidating multiple IT assets and disparate business processes globally.
- Cost reduction by server consolidation
Nomura Holdings – INTERNAL USE ONLYSales Play – Finance Modernization
National Australia Bank – INTERNAL USE ONLYInformation Analytics Platform TransformationSales Play – Information management, ERM
COMPANY OVERVIEW National Australia Bank is a financial services
organisation with over 40,000 people, operating more than 1,800 branches globally. NAB operates major financial services franchises in Australia, as well as businesses in New Zealand, Asia, the United Kingdom and the United States. Each brand is uniquely positioned but built on a common commitment to providing quality products and services, fair fees and charges, and relationships built on the principles of help, guidance and advice.
• Net income A$4.58 billion (2010)• Total assets A$685 billion (2010)
MISSION/OPPORTUNITIES
• Assisting exploitation of NextGen Banking Platform
• Drive cost reduction through Process simplification, Technology simplification,Reduction in reconciliation and control effort, Reduction in cost of change
• Enhancing individual business capabilities
• Mine the cross enterprise services opportunities (particularly Risk , Finance, Capital Management and Customer Insight)
SOLUTIONS
• Oracle Financial Services Analytical Applications (Profitability, FTP, ALM Data Model, Profitability Analytics, Corporate and Retail Credit Risk, Basel II, Basel II Analytics)
• Oracle Financial Accounting Hub
• Siebel UCM
EXPECTED BENEFITS
• Support core banking transformation by realigning activity execution
• Provide support for support for multi-branding and rapid product manufacture independent of brand
• Establish a holistic perspective across enterprise service focuses – risk , finance, operational support
• Reconcile information across the required dimensions
• Leverage industry maturity and development to reduce complexity and speed reaction time to market opportunities and regulatory needs
Royal Bank of Scotland – INTERNAL USE ONLYFiRST - Finance and Risk Systems TransformationSales 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 bank is looking at a player who can invest in this proposition as a partner & support a Tier1 global player such as RBS
• The bank’s aim is to do as minimal customizations as possible and deploy the out-of-box functionality proposed as part of the Oracle solution stack
• The bank intends to complete the transformation exercise by FY 2013
Split across LOB’s (Net LF), approx. % of deal for each Oracle LOB
OFSAA (FSGBU) 27%
ERP
26% ERP II
Apps EPM 22%
BI 5%
Technology 20%
Total 100%
Anatomy of the Deal
Solution ExpertiseIBU Enterprise Risk and Finance coverage
Yadhunath Srinivasan, Singapore(JAPAC ERF POC)
Patrick Ng, Hong Kong
Kiran Kesavarapu, India
Rob Woods, Australia
Bill Greene, NY(NAS ERF POC)
Mark Smedley, WA(NAS Geo Lead)
Frank Siderio, PA
Luis Arturo Diaz, FL
Stephen Skrobala, Spain(EMEA ERF POC)
Nazif Mohammed(EMEA Geo Lead)
Irma Coetzee
Stuart Houston, Hong KongERF Global Solution Manager
© 2011 Oracle Corporation – Proprietary and Confidential Slide 26
Enterprise Risk and FinanceGlobal Contacts
Asia Pacific
Yadhunath Srinivasan
+65 8112 7152
Based in Singapore
Europe, Middle-East, Africa
Stephen Skrobala
+34916312801
Based in Madrid, Spain
ERF Global Solution Manager
Stuart Houston
+852 6016 5399
Based in Hong Kong
The Americas
Bill Greene
+1 973 960 4796
Based in New York
© 2010 Oracle Corporation – Proprietary and Confidential
Thank You