Credit Operations Efficiency
IQ reviewed the department's current operations and MIS, enabled the improvement of operational efficiencies and insight into issue areas beyond the operations realm.
The Business Challenge
Within a large financial institution’s credit business unit, various inefficiencies were adversely affecting operational effectiveness. The urgency of understanding these was exacerbated by internal projects changing existing operating systems and a planned office move.
IQ with their extensive Credit Operations exposure, IT and process methodology expertise as well as their understanding of the culture was preferred to conduct an independent review to understand root causes and provide guidance for improvement.
IQ was asked to review the current Management Information System (MIS), processes and controls within the department.
The Solution
IQ devised a two phase approach: an initial investigation followed by a more detailed analysis of identified issues with subsequent development of operational and control improvements
The objective of the initial two week investigation was to identify main operational issues. IQ interviewed staff members across three functional areas: Counterparty Credit, Trading Product Exposure Management (TPEM) and Credit Operations. The semi-structured interviews were based on a formal questionnaire that provided a basis for further discussion. Follow-up sessions were conducted where necessary.
During the detailed project phase each Credit Analyst interviewed previously was approached with a detailed questionnaire asking for clarification and greater detail on statements, comments and issues made during the course of the initial interview. Initial findings were consolidated and actual instances of issues were identified.
The Benefits
The IQ Business Group was able to provide their client with specific, implementable recommendations for improving operational efficiency and facilitating relocation of the department. In addition to delivering on the business requirements IQ was able to provide insight to issue areas that extended beyond the operations realm. Other business benefits include:
- Greater productivity within Capital Credit and with other departments
- Enhanced control and management of confidential information
- Decreased regulatory and compliance risks