Risk Cockpit April 2020

This month has seen a large number of small improvements to existing functionality within the KRM22 Risk Cockpit; two enhancements stand out in particular.

Smart Register data grids

One of the biggest, but perhaps least noticeable changes to the Risk Cockpit this month has been the complete rebuild of the Smart Register data grids.

We rebuilt these grids to deliver a range of functional improvements in the short term and to provide a more robust foundation for the development of planned, advanced capability in the future.

In the short term, the key functional improvements that users should notice in the Smart Registers are;

  • Improved user experience to search and filtering within the Smart Registers
  • Improvements in the look & feel of the Smart Registers
  • Ability to resize and ‘Pin’ columns to the left of the Smart Registers

Intraday Metric frequency

Another significant change during this month has been the addition of intraday frequencies on metrics allow data to be captured in various timeslots, down to as little as 5-minute intervals.

This enhancement was made in response to a customer request who is using the Risk Cockpit within their operations and IT functions. This customer’s risk profile can change very quickly during the day; therefore, they wanted to use metrics to “see those signals within the noise” of their data. This enables them to proactively respond, faster and earlier rather than ‘flying blind’ and being hit by a more severe issue further down the line.

Metric Threshold Plan (MTP)

Metric Threshold Plan is a piece of functionality within the Risk Cockpit which enables monitoring of metrics where the target values and thresholds change over time.

Two contrasting examples of where this functionality has been deployed include;

  1. Monitoring risk within a Clearing Operations function where one of the key metrics is Number of Uncleared Trades. At the start of the day, the thresholds can be wide; however, as the trading day progresses, with the end of the day in sight, the number and thresholds become increasingly important. These need to be fine-tuned based on time so that any issues clearing trades are highlighted immediately and can be addressed quickly without putting at risk the firms’ ability to clear all trades by the end of day consistently.
  2. Monitoring the delivery of a firms’ business plan.Many firms are poor at translating their business plans into a suite of metrics and monitoring those metrics over time; therefore tracking the delivery of the business plan. One of the challenges in monitoring business plan delivery is the ability to set varying targets and thresholds overtime. Within the KRM22 Risk Cockpit, the Metric Threshold Plan (MTP) functionality was developed as a direct result of a customer requirement. The customer wanted to monitor some high-level metrics related to sales revenue, operational and capital costs and profitability. However, they wanted to set different targets and thresholds, for every month, over the life of the business plan (36 months). We met that requirement via the enhanced MTP functionality, allowing key numbers; such as revenue, costs and profit to be copied out of the customers business plan spreadsheet and pasted directly into the Risk Cockpit.

The MTP functionality already existed in the Risk Cockpit however, only for Weekly, Monthly and Quarterly metrics. During April, we enhanced this functionality to include all metric frequency, improved the look & feel, and enhanced the overall user experience of this functionality.

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