How Real Time Analytics Can Reduce Risk

Reduce risk with real time analytics

The banking sector faces serious lending risks on an everyday level, but with real-time analytics these risks can be managed, reduced and made more rewarding for the institution.

British Arab Commercial bank (BACB) has recently experienced greater success as a result of installing IBM’s real-time business analytics system because it no longer needs to rely on spreadsheets and human input accuracy.

Real-time analytics software accesses and analyses data from different sources, enabling the business to make the right decision based on relevant information. Data is available instantly and allows a company to react straightaway to any potential risks as well as opportunities.

Reporting on the London-based wholesale bank’s installation of real-time analytics, Computer World UK states that BACB has experienced a number of benefits and that the “new functionality has proved vital for the bank in increasing visibility to hidden exposures and risks”.

BACB specialises in providing trade and project finance for Arab markets and works with exporters and contractors across different business units including core banking, derivatives and trade finance.

Being able to check the credit rating for all customers gives BACB business agility and a competitive advantage, highlighting any high-risk customers so immediate action can be taken. The bank can also compare its current status against “what if” scenarios to ensure it’s making the right business moves within the market.

Real time analytics benefits

Without real-time analytics tools, time is not only lost on digesting lengthy reports and inevitable human mistakes made within extensive spreadsheets but incorrect decisions are more likely to be made as a result of data being out-of-date – with business analytics human error is removed and valuable business decision support is provided in real-time.

Crispian Denby, chief financial officer at BACB said: “IBM analytics software has helped reduce the bank’s exposure to risk by eliminating its dependency on spreadsheets which were subject to inconsistent data due to human error.

“Our confidence in the accuracy of our information has led to faster, more responsive decision-making which ultimately helps us maintain our leading position in the Arab trade and project finance market.”

Awardaroo has worked with clients across various industries and is experienced at tailoring real-time analytics systems for business. Knowing exactly where your company stands in terms of risks, assets, commitments and more means decisions are made with total accuracy, enhancing operations efficiency and reducing financial risks.