Operational Excellence in Asset Management and Bank Treasury
Flexible Workflows as the Key to Success
In the context of increasingly volatile financial markets, we take a look at the importance of flexible workflows for Treasury and Asset Management. We show how our expertise in developing and designing flexible workflows can help achieve operational excellence and create competitive advantage.
- Composable Workflows as a Response to Uncertainty and the Need for Adaptability
- Designing Composable Business and Technology Architectures to Maximise Value
- What Does It Mean to Make Both Business and Technology Composable?
- How You Can Start the Process and Validate Existing Opportunities in Your Organisation
- Summary
- Quellenangabe
In dieser Collection enthalten:
Collection öffnenAnwenderkonferenz Meldewesen & Risikomanagement - Rückblick auf eine erfolgreiche Veranstaltung
Operational Excellence im Asset Management und Banken Treasury: Flexible Workflows als Schlüssel zum Erfolg
Zinsbuchsteuerung mit langlaufenden Benchmarks – Auswirkungen der aktuellen Marktentwicklungen
Impuls “Risk & Regulatory Reporting” – 8. MaRisk-Novelle und CSRBB
8. MaRisk-Novelle – Neue Anforderungen im Risiko-Reporting
Impuls “Risk & Regulatory Reporting” – ESG im Risikomanagement
Interview mit Dr. Frank Schlottmann über die wichtigsten Einflussfaktoren auf die Bankenbranche
Rekalibrierung der IRRBB-Zinsschocks – BCBS hat das finale Papier veröffentlicht
Umsetzung der EBA-Anforderungen an IRRBB und CSRBB mit der 8. MaRisk-Novelle
How to get Operational Excellence?
Currently asset managers and banks face increasingly complex challenges. Digital transformation, constantly changing regulatory frameworks, cost pressure, and the rapid pace of technological developments demand high flexibility and agility. Companies must continuously adjust their processes in order to remain competitive and fulfil regulatory requirements.
In this context, the question “make or buy?” plays a central role: Should solutions be internally developed or procured externally? In this regard, quick but sustainable decision-making is crucial. Flexible workflows make it possible to react efficiently to these dynamic conditions while simultaneously achieving operational excellence. They provide leeway and flexibility necessary for constant adjustment, enabling companies to operate more efficiently, minimise risks, and leverage competitive advantages. This article explores how flexible workflows serve as a key to operational excellence in bank Treasury and Asset Management, and why their implementation is indispensable today.
Composable Workflows as a Response to Uncertainty and the Need for Adaptability
Composable workflows enable the design of complex processes through the combination of smaller, reusable building blocks. These units can be flexibly assembled and modified to meet changing requirements and conditions in dynamic business environments. In this way, banks and asset managers can react more quickly to new challenges and make adjustments without the need to redesign existing structures from the ground up. Composability encompasses not only the workflows of business activities, but also the underlying technological solutions.
By implementing composable workflows, our clients improve their productivity, shorten development cycles, and increase flexibility to respond with agility to new business opportunities and regulatory requirements. This approach simultaneously allows for the use of the best technologies and flexible solutions for specific challenges.
Designing Composable Business and Technology Architectures to Maximise Value
Although the concept of composability is nothing new, it is often inadequately implemented in the financial sector.
Successful business and technology architectures are based on three essential elements:
1. Composable Thinking and Acting in Management
• Promotion of teams to build strong partnerships with external consultants and business partners.
• Establishment of a culture of trust that enables employees to make autonomous decisions
• Implementation of flexible strategies to recognise opportunities and respond quickly to threats.
2. Composable Business Architecture
• Formation of multidisciplinary teams to comprehensively understand values, opportunities, and responsibilities.
• Empowerment of business units which are involved in digital strategies through purely IT-driven decision processes.
• Simultaneous advancement of business processes and supporting technological functions in order to create synergies.
Enabling of a Composable IT Structure
A composable IT structure is crucial for agile adaptation to new business requirements and technological developments. The following approaches are central to this topic:
- Promotion of continual knowledge exchange between internal business units, product teams, and external consultants and partners, in order to optimally utilise technologies and know-how.
- Development of dynamic integration solutions that allow for quick and seamless connection of data, analytics, and application components.
- Implementation of iterative development processes as a standard to achieve rapid results through repeated testing and adjustment.
What Does It Mean to Make Both Business and Technology Composable?
In order to adapt quickly and flexibly to changes, IT systems, business structures and products should be designed modularly. The key lies in modularity – processes and workflows are divided into self-standing, reusable base units, which can be easily combined and exchanged. The main principles of this approach are:
- Modularity:Work processes and value chains are segmented into individual modules that can be exchanged or expanded according to need, without losing value or efficiency. This enables rapid response to new requirements and optimisation of existing processes through internal or external improvements.
- Cost Control: Reusing modules reduces development and operating costs, as not every component has to be created new.
- Innovation und Flexibility: New modules open up new possibilities. They allow to quickly integrate “best-of-breed” solutions (make-or-buy), thereby driving innovation and providing you with flexible service offering.
Composable IT structures thus provide the foundation for efficient, scalable, and future-proof business processes that keep pace with market dynamics.
How You Can Start the Process and Validate Existing Opportunities in Your Organisation
A thorough analysis of the current situation, as with any change process, is essential. However, in our consulting experience in the Treasury and Asset Management segment, this crucial step is often underestimated. Sound stocktaking forms the basis for all subsequent decisions and sheds light on potential for optimisation.
But Where to Start?
Areas of your organisation that change frequently and rapidly – such as customer segments, products, or IT – offer significant potential for initial “quick wins” in implementing a modular structure. These successes are crucial for building trust in the process and facilitating a smoother transition.
Start Small and Grow
Gradual implementation of modular workflows is the most effective way to demonstrate utility and build trust in the method. An additional benefit: Your teams gain valuable experience through the implementation of smaller projects, which can later be applied to larger undertakings.
Planning for the Future
It is expected that the number of modules and units you will need to manage in the future will grow significantly. Therefore, it is important to develop an architecture early on that can handle this complexity, as well as to utilise appropriate tools to manage modularity efficiently.
Development of Teams
Use the opportunity to expand the skills and competencies of your teams, including through external input from consultants. It will be necessary to expand the modular approach to other business areas, in order to realise the full potential of composability.
Management of External Applications
For external applications, stringent guidelines for data security and risk management are currently crucial. Set clear standards to minimise unnecessary risks. In the banking environment, increasing regulatory requirements for the use of external (software) applications must also be considered. Particular attention should now be given to the requirements of DORA (Digital Operational Resilience Act)1
Summary
To be successful with composability, your team requires new skills, competencies, and tools. Give them the time and resources to adapt and to grow – and in this way lay the foundation for a future-proof, agile organisation.
We support you with our expertise not only in Treasury and Asset Management, but also in the development of flexible workflows. Our quick check for treasury management can serve as a starting point for this.
Quick Check für Treasury Management
We support you with our expertise not only in treasury and asset management, but also in the development of flexible workflows. Our quick check for treasury management can be an initial starting point for this.
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