Genpact Business Case

Competitor’s Offering and Business Case for Genpact

Post release of the guidelines by BCBS, many financial and IT consulting came up with different offerings for banks and financial institutions. We studied a few major companies operating in this space and their offerings. These offerings can be classified into the following three categories:

• Third Process Service Provider: These are the companies that maintain banks existing data warehouse and modify these as per the changing regulations.

• Solution Provider: These are the companies that have their risk management applications which they sell and maintain for the banks.

• Process Consultants: These are the companies that study the client’s processes and help assess gaps in the existing process

Both the companies have their banking application (Finacle for Infosys and Bancs for TCS) and they have integrated the risk management service along with the application. Oracle and SAS also have their own risk management solution that supports BCBS guidelines. McKinsey and Deloitte, because of their deep knowledge and experience in banking and financial regulation space, offer process consulting to many banks.

Business Case for Genpact

Genpact can act as both Third Party Service Provider or as a Process Consultant because of the following reasons:

• Deep process knowledge can help Genpact in understanding the principles & their relation to the institution’s current risk data which can play a crucial role in interlinking risk data aggregation and risk reporting practices simultaneously.

• Assisting with self-assessments by utilizing Genpact’s deep understanding of both business & technical requirements of complex risk data/reporting infrastructures

• It can identify gaps in the risk data, reporting & IT infrastructure.

• Assist in developing forward looking reporting capabilities to provide early warnings of any potential breaches of risk limits & risk appetite plus help in conducting flexible & effective stress testing.

• Provide expert judgment on incomplete data to facilitate aggregation process as well as interpretation of results within the risk reporting

There are multiple processes which concern with the entry of data into this warehouse, quality of the data entering this warehouse, quality of reports generated from the data in the warehouse and control of access to data in the warehouse. All such processes are encapsulated in the risk data governance function, the guidelines to which are specified in the Basel Principles for Effective Risk Data Aggregation and Risk Reporting. Owing to the dual impact that the risk data governance function has on the business, viz; compliance to Basel principles and standardization of processes; the evaluation of these processes is dual-faceted and can be carried out together.

The methodology can be explained in a step wise manner as below:

Step – 1: A comprehensive secondary research was done on the principles stipulated in the BCBS document and the processes surrounding risk data warehouse.

Step – 2: Process owners and Subject Matter Experts at Genpact were approached to know in depth details on various processes of risk data