The Chief Risk Officers (CROs) of international financial institutions face a critical challenge in making data-driven decisions effectively. A lack of consistency in data models and absence of automated dashboarding capabilities hinders their ability to gain timely access to risk-related metrics. Without a clear and visually represented overview of risk exposures, they struggle to identify emerging risks, make informed decisions, and communicate effectively with stakeholders. Arrayo recognized this hidden bottleneck and aimed to provide a solution that empowers CROs to leverage data analytics and visualization for improved risk management.

Delivery

Arrayo, a trusted consulting firm specializing in data analytics and visualization for risk management, took on a project for a large international financial institution. The objective was to develop a robust solution to support the Chief Risk Officer’s decision-making process. The project consisted of the following key components:

• Consistent Data Model: Arrayo worked closely with the institution’s risk management division to design and implement a consistent and comprehensive data model. This involved understanding the business domain and data modeling requirements specific to each risk category, such as credit, market, liquidity, and operational risks.
• Automated Dashboarding: Leveraging its expertise in data visualization techniques and UX/UI principles, Arrayo developed automated risk appetite dashboards. These dashboards provided an intuitive, graphical representation of key risk metrics for each risk category, enabling the CRO to monitor risk exposures in real-time.
• In-Depth Risk Profiles: Arrayo went a step further by developing risk profiles with more granular insights into each risk variable. These profiles allowed the CRO to conduct in-depth analyses and identify potential risk trends and outliers, fostering proactive risk management strategies.
• Automated Slide Generation: To streamline Risk Committee meetings, Arrayo automated the generation of presentation slides with up-to-date risk variable information. This ensured that critical risk insights were readily available for discussions and decision-making.
• Data Marts with Key Variables: Arrayo set up data marts containing key variables, ensuring data documentation and validation were maintained for regulatory compliance and internal auditing purposes.

Value

The collaboration between Arrayo and the international financial institution yielded transformative results for the Chief Risk Officer and the risk management division:

• Enhanced Decision-making: The consistent data model and automated dashboards provided the CRO with a holistic view of risk exposures, facilitating quicker and more informed decision-making.
• Improved Risk Awareness: The in-depth risk profiles allowed the CRO to delve into specific risk variables, identifying emerging risks and potential mitigations with greater accuracy.
• Efficient Communication: Through automated slides for Risk Committee meetings, the CRO efficiently presented risk insights, driving productive discussions and timely actions.
• Regulatory Compliance: The setup of data marts with key variables ensured compliance with regulatory requirements, enabling the institution to confidently meet reporting obligations.

In conclusion, Arrayo’s expertise in data analytics and visualization for risk management enabled the financial institution’s Chief Risk Officer to overcome data-driven decision-making challenges. By developing a consistent data model and automated dashboarding capabilities, Arrayo empowered the CRO with valuable risk insights, paving the way for proactive risk management and improved stakeholder communication.