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Starting point: Under pressure to reign in risk exposure, this Fortune 10 banking client sought to establish an enterprise-wide predictive modeling capability that would:

  • Greatly improve its ability to anticipate, manage, and mitigate losses
  • Understand customer usage patterns and trends to limit risk exposure
  • Rapidly respond to cycle, market, and customer shifts
  • Improve customer loyalty and cultivate more profitable customer relationships

But a heavily siloed business model stood in the way of progress.

Why CG?

Why CG?: The client selected CG to drive the assessment phase of this initiative as well as lead the change initiatives associated with this target state plan of this project because of our proven performance in the risk arena, deep experience in consumer credit and core banking, and knowledge of the client’s own business goals, operational environments, and technology systems.

Roadmap

The CG Roadmap: CG worked with the bank’s business and technology heads to provide a current state analysis, define the target state across all areas/product lines, and design the overall roadmap for reaching the target state (an enterprise view of risk by customer). Our work was used in approximately 80 initiatives encompassing critical enterprise-wide changes to strategy, policy, management routine, processes, and technology systems.

Milestone

Memorable Milestone: Throughout the assessment, CG played a key role in keeping this politically charged initiative on track by balancing the needs of the many stakeholders involved. We helped all parties stay focused on the common goals of creating a centralized risk management system. An incredible, but rare accomplishment, this system is in full execution mode, delivering measurable value to our client and its customers.

Success

Success: CG successfully delivered the risk assessment phase in 10 weeks, enabling our client to get a jump on implementing a three-year plan to reach the target state. The program produced loss mitigation savings of approximately $1 billion.

Risk Assessment & Management

Fortune 10 Bank

CG helps client establish enterprise-wide risk management program that delivers $1 billion in loss mitigation savings, reduces exposure, and creates new revenue opportunities

Business Challenge: Creating and cultivating a new perspective on risk management

The volatility of the post-financial crisis environment had created a risk nightmare for this Fortune 10 banking client. Under immediate pressure to reign in risk exposure across the enterprise, the client needed a new strategy for assessing and managing risk – one that went far beyond the traditional product-centric approach which created large, potentially dangerous gaps in the bank’s risk portfolio. Establishing an enterprise-wide predictive modeling capability would greatly improve the client’s ability to:

  • Anticipate, manage, and reduce losses.
  • Understand and leverage customer usage patterns and trends to limit the bank’s exposure.
  • Have access to customer data across lines of business.
  • Rapidly and appropriately respond to cycle, market, and customer shifts.
  • Improve customer loyalty and cultivate more profitable customer relationships.

Aligning target market positions for its hundreds of products – and doing so from a unified customer perspective – would be critical to establishing this cross-enterprise predictive modeling capability. But an entrenched, heavily siloed business model stood in the way – plaguing integration across business operations, data management, and IT – and contributing to the high cost and effort of controlling risk at the enterprise level. The client struggled with where and how to start this seemingly star-crossed initiative.

The CG Solution: A detailed plan for moving from the past to the future

The client selected CG to drive the assessment phase as well as lead the change initiatives associated with this target state plan of this project because of the firm’s proven performance in the risk arena, deep experience in consumer credit and core banking, and knowledge of the client’s own business goals, operational environments, and technology systems.

Management & Technology Consulting: CG’s management consultants worked with the bank’s business and technology heads – representing hundreds of business and product lines – to provide:

  • Current state analysis (business and technology) for all consumer credit product areas
  • Definition of target state across all areas/products
  • Overall roadmap – including a gap closure plan, benefits, and cost estimates – for reaching the defined target state (an enterprise view of risk by customer)

CG’s analytical expertise helped the client make sense of its many different data systems – where information was stored, how it was structured, how old it was, whether it was accurate, etc. – to ensure the enterprise risk system could be populated with consistent and usable data.

CG also helped the client define common solutions across product lines which leveraged existing tools and led to the development of best practices that delivered cost savings and efficiency improvements.

CG’s assessment work was used in approximately 80 initiatives encompassing critical enterprise-wide changes to strategy, policy, management routine, processes, and technology systems.

Program and politics management: Throughout the assessment, CG played a key role in keeping this politically charged initiative on track by understanding and balancing the needs of the many business, product, and technology stakeholders involved. CG helped all parties stay focused on the common goals of creating a holistic view of the customer's relationship.  Our client continues to benefit from the achievements of this project and this capability is in full execution mode, delivering measurable value to our client and its customers.

Results: Less risk, more reward

The risk assessment phase was successfully delivered to the client in 10 weeks, enabling the client to begin implementation of the three-year, multi-generational plan to reach the target state, which delivered loss mitigation savings of approximately $1 billion in the first year alone. CG continues to work with the client to manage and implement against the plan. Additional results include:

        Success Metrics

  • Unified consumer view provides risk, product, and business executives with multiple views of consumer risk data – by business unit, product, market sector, geography, etc. – enabling more informed decisions.
  • Enables more effective and targeted marketing to customers as a result of enhanced segmentation and profiling capabilities from unified customer view.
  • Aligned target market goals for all products enable risk tolerance levels to be set and enforced across the organization.
  • Customers now have access to accurate, up-to-date, and customized information on products and services across the scope of their account footprints with the bank.

Risk Assessment & Management

Fortune 10 Bank

CG helps client establish enterprise-wide risk management program that delivers $1 billion in loss mitigation savings, reduces exposure, and creates new revenue opportunities

Business Challenge: Creating and cultivating a new perspective on risk management

The volatility of the post-financial crisis environment had created a risk nightmare for this Fortune 10 banking client. Under immediate pressure to reign in risk exposure across the enterprise, the client needed a new strategy for assessing and managing risk – one that went far beyond the traditional product-centric approach which created large, potentially dangerous gaps in the bank’s risk portfolio. Establishing an enterprise-wide predictive modeling capability would greatly improve the client’s ability to:

  • Anticipate, manage, and reduce losses.
  • Understand and leverage customer usage patterns and trends to limit the bank’s exposure.
  • Have access to customer data across lines of business.
  • Rapidly and appropriately respond to cycle, market, and customer shifts.
  • Improve customer loyalty and cultivate more profitable customer relationships.

Aligning target market positions for its hundreds of products – and doing so from a unified customer perspective – would be critical to establishing this cross-enterprise predictive modeling capability. But an entrenched, heavily siloed business model stood in the way – plaguing integration across business operations, data management, and IT – and contributing to the high cost and effort of controlling risk at the enterprise level. The client struggled with where and how to start this seemingly star-crossed initiative.

The CG Solution: A detailed plan for moving from the past to the future

The client selected CG to drive the assessment phase as well as lead the change initiatives associated with this target state plan of this project because of the firm’s proven performance in the risk arena, deep experience in consumer credit and core banking, and knowledge of the client’s own business goals, operational environments, and technology systems.

Management & Technology Consulting: CG’s management consultants worked with the bank’s business and technology heads – representing hundreds of business and product lines – to provide:

  • Current state analysis (business and technology) for all consumer credit product areas
  • Definition of target state across all areas/products
  • Overall roadmap – including a gap closure plan, benefits, and cost estimates – for reaching the defined target state (an enterprise view of risk by customer)

CG’s analytical expertise helped the client make sense of its many different data systems – where information was stored, how it was structured, how old it was, whether it was accurate, etc. – to ensure the enterprise risk system could be populated with consistent and usable data.

CG also helped the client define common solutions across product lines which leveraged existing tools and led to the development of best practices that delivered cost savings and efficiency improvements.

CG’s assessment work was used in approximately 80 initiatives encompassing critical enterprise-wide changes to strategy, policy, management routine, processes, and technology systems.

Program and politics management: Throughout the assessment, CG played a key role in keeping this politically charged initiative on track by understanding and balancing the needs of the many business, product, and technology stakeholders involved. CG helped all parties stay focused on the common goals of creating a holistic view of the customer's relationship.  Our client continues to benefit from the achievements of this project and this capability is in full execution mode, delivering measurable value to our client and its customers.

Results: Less risk, more reward

The risk assessment phase was successfully delivered to the client in 10 weeks, enabling the client to begin implementation of the three-year, multi-generational plan to reach the target state, which delivered loss mitigation savings of approximately $1 billion in the first year alone. CG continues to work with the client to manage and implement against the plan. Additional results include:

        Success Metrics

  • Unified consumer view provides risk, product, and business executives with multiple views of consumer risk data – by business unit, product, market sector, geography, etc. – enabling more informed decisions.
  • Enables more effective and targeted marketing to customers as a result of enhanced segmentation and profiling capabilities from unified customer view.
  • Aligned target market goals for all products enable risk tolerance levels to be set and enforced across the organization.
  • Customers now have access to accurate, up-to-date, and customized information on products and services across the scope of their account footprints with the bank.