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What this blog covers:

  • Global financial institutions deal with complex challenges and compliance issues for risk analytics
  • Understanding financial risk analytics and how it helps the BFSI sector in general
  • How can Kyvos resolve these challenges with advanced technologies like Smart OLAPTM and Smart Semantic Layer™
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The computing demands for global financial institutions are growing despite challenges such as digital adoption, security vulnerabilities, and process optimization for projected growth. Add the compliance and regulatory requirements to the mix, and you have more complexities to deal with.

The Global Financial Crisis of 2008 and London Whale 2012 were the eye-openers for the industry about anomalies of unnoticed or unaccounted risks.

To quell such risks, institutional investors and analysts need to understand their risk profile and manage it effectively, especially with their operations spanning multiple countries and jurisdictions. That’s where Kyvos offers the insights you need.

Reporting structures for financial risk monitoring can be complicated and involve several datasets, assets, and groups. To simplify them, we offer:

  • A holistic view across hundreds of reports
  • Thousands of concurrent queries
  • Transaction-level details
  • Ability to drill down through multiple hierarchies and complex calculations

What is Financial Risk Analytics?

Financial risk analytics provides solutions for identifying, measuring, and managing risks that can potentially affect an organization’s financial stability. No matter where the risks come from, you can deploy analytical tools to avoid them altogether. Of course, it’s easier said than done.

With increasingly interconnected economies, the potential for financial shocks is higher than ever before. New compliance needs and regulations make it more difficult to ignore this crucial data. The result is a higher investment in financial risk management resources for effective corporate governance.

How Instant Risk Analytics Helps Financial Institutions?

Fast and instant risk analytics as a business discipline can go a long way for the BFSI sector. It can bring radical changes in credit risk assessments and improve profitability. It offers benefits like:

Better Loan Volumes

When you can assess and predict credit and market risks with more accuracy and speed, cross-selling becomes easier. It helps reduce turndown rates and improves loan volumes. You can also work on risk-differentiated offers on products with heavy margins.

Reduced Operating Costs

Risk prescreening can substantially reduce overheads through well-targeted approaches. Improve your underwriting processes to avert operational risks at all levels within the organization.

Risk Assessment

With the ability to view and manage risks across multiple assets simultaneously, you can create a roadmap to forecast potential problems. Accordingly, you can draft viable solutions to ensure business growth.

Compliance with Statutory Regulations

Financial institutions are hard-pressed with regulatory burdens when handling their customers’ personal data. Cyberattacks like the infamous Equifax Breach of 2017 have put that sensitive data in the crosshairs of cybercriminals. To combat this persistent threat, government regulations have intensified over the years leading to statutory requirements like GLBA or Graham-Leach-Bailey Act, PCI DSS, and compliance with Basel Framework.

As a risk analyst, you need to keep pace with these norms and maintain a tight hold on customer data management. Let’s face it; it won’t take time for a simple monitoring activity to turn into an operational nightmare, all because there’s no simplified way to run reports at scale.

Constraints of Legacy Systems and Processes

Interpreting data in high volumes requires a skilled workforce and intelligent systems. Moreover, creating a consolidated view of a billion risk factors every day is not exactly a piece of cake. Assessing trends by correlating risks to various asset classes is equally confounding.

Most legacy systems lack intuitive and clean data visualization mechanisms to strip away irrelevant information.

Billions of daily transactions, multiple asset classes, hundreds of attributes, and multiple hierarchies create more complexities. Maintaining a consistent view across these assets to analyze data quickly and accurately puts pressure on legacy systems that aren’t built for data at this scale.

When you need to dig into the deepest granularity of your data, you may have to create multiple extracts and load them into an existing BI tool rigged with slow performance and size limitations.
This also increases your dependability on BI specialists to run SQL queries for reporting purposes. As a result, you may face longer turnaround times and higher costs.

Enter Smart OLAP™ and a High-Performing Semantic Layer from Kyvos Insights.

Now, instead of waiting for a data-analytics nirvana, you can analyze as much data as you need across hundreds of dimensions using any BI tool you like. Kyvos offers faster, deeper, and cost-efficient risk analytics without compromising performance.

How Kyvos Resolves Risk Analytics Challenges in Financial Institutions

Instant risk analytics can be more rewarding with the right partner on your side. Kyvos provides a solution that can work on billions and trillions of transactions with agility and efficiency.

The result is instant access to any granularity (transaction- or position-level data) every day for any number of concurrent users. Here’s how we do that:

Deal with Data at Any Scale

Our Smart OLAP™ technology lets you work with extremely large datasets, whether you need a million rows or a trillion. With advanced pre-aggregation across multiple dimensions and measures, you’ll get answers to any business question in sub-seconds.

Automatic Incremental Builds

Replacing old data and adding new fields of information has never been easier. No more relying on custom coding or manual processes when you can utilize Kyvos’ incremental build capabilities. It facilitates the undisrupted addition of new aggregates or selective updates on cube data. Forget downtimes and enjoy automatic refreshes with interactive access to newly ingested data.

A Single Source of Truth

Users across your organization can access a single source of truth for diversified enterprise data with our Smart Semantic Layer™. It creates a holistic view of your data, even for complex use cases.

Supports All Major BI Tools

With Kyvos, there is no need to move to any specific BI tool. We offer complete support for all popular BI tools, including MicroStrategy, Tableau, Excel, Cognos, etc. Enjoy seamless integration with custom applications using Java or REST APIs to continue working in a familiar environment.

Enterprise Security

Kyvos offers enterprise-grade security and support for standard frameworks and protocols. You can set up access control at the user or group level and ensure row and column security at each level.

From advanced analytical features to cloud-native support, Kyvos offers unique capabilities to financial institutions across the globe. To transform your financial risk analytics with unlimited scalability, request a demo with our team today!

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