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Case study 


Operational Risk Reporting System for

Banking Institution

The Challenge

  • Manual & Error-Prone
    Operational risk reports required manual compilation and validation, consuming hours of work and increasing the risk of mistakes.

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  • Limited Analytical Depth
    Statistical models were not fully optimised for Basel requirements, reducing precision in Operational VaR calculations.

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  • Cumbersome System Maintenance
    Existing VBA, SQL, and Access code was difficult to manage, making troubleshooting and updates time-consuming.

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  • Inefficient User Experience
    Report generation tools lacked a user-friendly interface, making parameter selection and configuration slow.

The Solution

  • Fully Automated Reporting
    Automated generation of risk reports with built-in error checks, eliminating the need for manual verification.

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  • Advanced Basel-Compliant Modelling
    Refined Monte Carlo simulations and Operational VaR modelling, including improved accuracy testing and statistical validation.

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  • Optimised & Scalable Framework
    Validated and improved over 10,000 lines of code, streamlined database operations, and ensured future scalability.

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  • Enhanced Control Panel & Templates
    Improved menus, parameter selection mechanisms, and visual layouts for faster, more intuitive use.

The Impact

  • Flawless automated reports with zero manual intervention

  • Compliance with Basel capital requirements through advanced statistical modelling

  • Reduced time and operational costs in risk reporting processes

  • Improved accuracy and consistency of outputs

Operational Risk Reporting System

for a Middle Eastern Banking Institution

 

The Challenge

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Our client, a leading banking institution in the Middle East, serves corporate and financial institutions, with a growing retail and private banking customer base.

The Operational Risk department approached Senacea to enhance their Operational Risk Reporting system. The aim was to automate complex calculations, ensure compliance with Basel capital requirements, and eliminate the time-consuming manual checks that slowed down reporting.

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Our initial consultation included an in-depth statistical and industry practice analysis, covering:

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  • Basel-aligned Monte Carlo modelling choices (variables, distributions, sample size, significance levels)

  • Operational VaR (Value at Risk) modelling

  • Model accuracy testing (Kolmogorov–Smirnov test)

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This formed the basis for an advanced, automated reporting solution that eliminated manual errors and saved hours of work.

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The Solution

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Senacea conducted a full evaluation of the existing system and developed a bespoke, future-proof reporting framework, featuring:

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  • Validation of 10,000+ lines of VBA & SQL code in Excel templates and computational logic

  • Refined statistical modelling aligned with Basel requirements for Monte Carlo simulations and Operational VaR

  • Macro enhancements for automated computations, error prevention, and troubleshooting incomplete uploads

  • Front-end upgrades to the reporting control panel for improved parameter selection and usability

  • Visual improvements to reporting templates

  • Database optimisation in MS Access, ensuring data correctness, removing duplicates, and highlighting formatting issues

  • Rebuilt data uploading systems for reliability and efficiency

  • Comprehensive documentation of macros, templates, simulation assumptions, and reporting processes

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The Impact

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  • With the new Operational Risk Reporting system, the client now enjoys:

  • Flawless automated reports with zero manual intervention

  • No need for manual error checks

  • Reduced time and costs in report preparation

  • A scalable, standardised system ready for future expansion

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