Current State Assessment of Risk Management System
Offering: Risk mitigation, Efficiency improvements, Cost reduction, Remaining competitive
Client: Tier 1 Global Investment Bank
Client Situation
The client, a Global Investment Bank, aimed to migrate the handling of its cash securities products from a legacy risk management system to a broader cash securities data store. To achieve this, Capital Markets Advisors’ resources were engaged to:
Act as the overall PMO for the development of the new data store.
Perform a current state analysis for the legacy system, which was managed by the derivatives IT team.
The key drivers behind this initiative included:
Risk mitigation.
Efficiency improvements.
Cost reduction.
Remaining competitive.
Approach
Capital Markets Advisors utilized a structured and methodical approach to ensure a seamless migration of the legacy risk management system to a new cash securities data store. This included:
Sample Deliverables
Assessment of Legacy Database Usage
Collaborated with the client to understand the current usage of the legacy database and its coverage of cash securities products.
Identified the breadth of products supported, including equities, futures, options, bonds, payments, and FX.
Stakeholder Engagement
Conducted detailed interviews with business and technical teams across all systems that feed data into or extract data from the legacy database.
Gathered insights into the critical dependencies, workflows, and challenges associated with the legacy system.
System Documentation
Developed a comprehensive systems description document, detailing all upstream and downstream systems that interact with the legacy database.
Documented the specific functions for which each system relies on the legacy data, ensuring a holistic understanding of integration points.
Data Analysis and Mapping
Reviewed the underlying data tables and fields within the legacy database, focusing on position and transaction tables for all supported products.
Created a detailed data dictionary to catalog and standardize data definitions for all relevant securities products.
Process Mapping
Mapped end-to-end processes for all systems interacting with the legacy database.
Documented the data transformations performed by each system to ensure accurate replication and migration of functionalities in the new data store.
This approach provided a deep understanding of the legacy system's structure and dependencies, laying the foundation for a smooth migration to the new cash securities data store. It also enabled the identification of potential risks and gaps, ensuring the solution was both robust and aligned with the client’s strategic goals.
Benefits
The migration initiative delivered significant benefits to the client:
Reduced risk by modernizing the risk management infrastructure.
Improved efficiency through streamlined processes and a broader data architecture.
Lowered costs by replacing the legacy system with a more scalable and maintainable solution.
Enhanced competitiveness by enabling more robust handling of cash securities products.
This transformation positioned the client to handle cash securities more effectively while supporting future growth and innovation.
