Managing the most important risks

In the first two posts of this trilogy, we looked at the types of risk that financial firms face, and our approach to identifying and assessing risks.

In this third and final post, we move on to describe our approach to managing the most important risks facing your firm.

Introducing the Prodktr Transformation Roadmap Service
Our process for reviewing and mitigating risks is called our Transformation Roadmap Service (TRS).

During a TRS review, we analyse your investment operating model services, processes and underlying systems to find a path to increased efficiency and reduced cost.

Using the TRS is an opportunity for you to redefine services, simplify operating models, review your productivity against the rest of your industry and plan for future growth. With the TRS, we can give you the evidence you need to simplify and upgrade your internal processes to become more competitive.

Why use the TRS?

  • Reduce the high costs of cross-asset, front-to-back operating models (such as technology, personnel and so on)
  • Simplify and streamline your processes to make them more transparent and efficient
  • Reduce trading and operating costs to offset the effect of lower revenues
  • Accelerate the adoption of AI and digital ledger technology (DLT)
  • Create a standard service taxonomy to be used as a common language throughout the organisation
  • Monetise your infrastructure by offering it to external third parties, potentially turning it into a new profit centre for your firm.

 

How the TRS works, step by step

The TRS breaks down into three main phases.

First, we carry out our initial assessment of your front-to-back technology operating model, mapping your infrastructure in detail. Based on our findings, we formulate a problem statement that defines what needs to change.

In the second stage, we propose solution options and help you to make a decision on the best way forward. The choice is usually between optimising your existing setup, or choosing a new provider and/or platform.

As part of this phase, we carry out a cost-benefit analysis and benchmarking, to get a clear picture of where you are now. We develop a detailed business case for transformation and create a design for your future operating model, so you can see exactly where you are headed.

The final stage is the delivery of the road map. This includes planning and managing the transition to your new operating model, the governance of the resulting change programme and overseeing all the commercial and contractual arrangements that are involved.

With far-reaching projects like this, ownership and control are vital. That’s why we create a steering committee at the start of the project, to support the delivery of the new operating model. Membership of the committee depends on the scope of the project, but might typically include the project sponsor, the accountable executive and heads of investment, trading, risk, legal, audit, compliance, operations and technology, plus the programme lead.

ProdktrSegue: what it does and how it helps

To accelerate system migrations, we use our proprietary software tool, ProdktrSegue.

Using ProdktrSegue, we can transition Investment Operations processes from one technology/service provider to another efficiently and safely.

Some features and benefits of the ProdktrSegue platform include:

  • Fully loaded: ProdktrSegue is easily configurable and adaptable to a range of services and technologies used in derivatives and investment operations
  • Plug and play: ProdktrSegue is ready-configured to plug into some of the leading capital markets service and technology providers for derivatives and securities, including CRD, SS&C Globeop and Calypso
  • Error-proof: ProdktrSegue has built-in checks and verifications to ensure data quality
  • Multi-source ready: ProdktrSegue provides seamless multi-source three-way trade and position reconciliation between client, service provider and brokers
  • Comprehensive event management: ProdktrSegue supports all cross-asset-class market events and processes
  • Broker-agnostic: ProdktrSegue is agnostic over the choice of bank loans, CFDs or prime brokers, and comes pre-canned with some of the leading street brokers
  • Quick and easy setup: FinTech software-as-a-Service (SaaS) cloud model and next-day client installation and delivery.
  • Help when you need it: ProdktrSegue is fully supported by our experienced transformation transition specialists.

To learn about this topic in more detail, download our free whitepaper A Risk Based Approach to Transforming Your Trading Operating Model.

To find out more about our transformation approach and how it could be applied to your organisation, please contact us.