In recent days, the SAS Risk Revolution, an event aimed at the banking and insurance sector, which analyzed the business challenges and analytical trends for these markets.
Although analytics is transversal to all companies, there are niches with additional challenges that range from strict regulation to the confidentiality of sensitive assets, topics that were covered in the last SAS Risk Revolution. An event divided into two large segments: banking and insurance.
The morning session, aimed at the banking sector, focused on Asset and Liability Management, also known as ALM (Asset and Liability Management) and was led by Luis Angel Barrientos, senior manager of Risk Domain Expert solutions at SAS México.
Remember that ALM is a scientific branch through which the total assets and liabilities of a bank are controlled and managed simultaneously, and in an integrated manner. It is also understood as measurement techniques and procedures group to ensure correct investment and financing decision-making.
This is where tools come in. analytics and where Barrientos stands out "SAS has arranged all these technological tools in a sequence that allow the analysis to be given an objective, taking it to the risk solution schemes”.
Risk appetite and decisions
But in addition to these indicators and metrics, grouped and related through analytical tools, There is another crucial factor in business strategies and it is the risk appetite of each organization.
Defined as the degree of uncertainty (risk) that an organization is willing to accept without affecting the achievement of its business objectives. This risk appetite, together with the indicators, is used to make decisions from senior management.
Thus, An entity may set its own goals, business objectives, and the risks it is willing to take to achieve them. Risks that grow every day, from regulatory, political and security, to climatic.
Due to this changing dynamic, Barrientos highlights the flexibility of analytics platforms to adapt, even adopting low code/No code trends.
“Currently, analytics has two main streams: those who like to code and code, and those who are more into business who understand the methodologies but don't want to code. These two possibilities are within the SAS platform”.
Insurance and analytics
The afternoon of the SAS Risk Revolution served to examine the challenges of another of the most regulated markets in the world: the insurance industries and specifically dealing with the issue of the IFRS17 standard.
Created by the International Accounting Standards Board (IASB), la IFRS17 It is the standard that governs the accounting of insurance contracts. A topic dealt with Augustine Terrile, Global IFRS17 Business Manager of SAS and who highlights the complexities of this regulation that range from technical (IT) to accounting aspects.
Faced with these challenges SAS developed tools that go beyond regulatory compliance and also serve as management tools to make better business decisions..
“Basically, the regulation will ask you for a number of reports that are submitted every six months, a year, or they can be monthly, that will depend on local regulations. What SAS gives you is the possibility of not only complying with these standards, but also using the platform to make your own management reports” says Terrile.
Lastly, Terrile emphasizes the benefits of SAS analytics solutions for their flexibility and for the same way they were built, like a WhiteBox. That is to say, "It is a white box and the development code of that box is known by many, and easy to modify."