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Operational Risk Management for Excel-Based EUCs

Reduce EUC risk with Schematiq's tools for data integrity, version/access controls, and auditability of Excel models.

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Reduce the operational risk of Excel

Excel has long been a trusted tool for data manipulation and analysis. However, as organisations become increasingly data-centric and models more complex, the operational risks associated with using Excel for critical processes become more pronounced.

 

Schematiq's platform for Excel helps manage and mitigate these risks with:

 

  • A workbench and cloud platform to remediate problematic EUCs, creating optimised, highly available and performant models.

  • An operational control framework for access control, versioning and testing, release and audit processes.

  • Integration with data sources, strategic systems and low-code providers to scale and share proven models in a controlled way.

Excel is a versatile and user-friendly tool, but it is not without its limitations and risks when used extensively in critical business operations.

 

Typically, organisations manage risks by putting operational risk management systems around the use of Excel, which only addresses a small number of challenges. 

 

Another approach has been to attempt to eradicate Excel by re-platforming: translating models to code, for example, in C# Python. 

 

This has proven costly, time-consuming and restrictive, eroding the original business value created due to the lack of agility and increased time to market.

How Schematiq’s empowered Excel solution helps businesses reduce operational risk

Data on a Touch Pad

Data Fragmentation

In large organisations, Excel-based EUCs proliferate across departments and teams, leading to fragmented and uncoordinated data management as silos are created across multiple Excel workbooks.

 

This fragmentation results in data discrepancies and operational inefficiencies and hampers real-time decision-making.

Schematiq Data-connectors mitigate these risks, overcoming fragmented data by allowing Excel to connect to real-time, limitless data, including historic data and live data from sources such as SQL, Oracle, S3, Snowflake, SAP HANA, etc.

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Eliminate Error-Prone Manual Processes

Excel relies heavily on manual data entry and formula-based calculations. Human errors, such as data entry mistakes, formula discrepancies or overwriting, can lead to potential risks, including audit, compliance and regulatory challenges and, in some cases, financial losses.

 

Schematiq helps identify and manage these risks by allowing you to:

01

Remove manual processes associated with data entry - Excel can now access data at its source.

02

Enable formulas to be applied to entire sheets and large data sets once, rather than dragged row-by-row, using Schematiq table functions.

03

Replace swathes of VBA and complex, repeated formulas to reduce risk, complexity and duplication using proven Schematiq functions.

04

Automate and schedule workbooks.

05

Create Tests to ensure changes work as anticipated.

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Better Version Control

Version control in Excel can be challenging, particularly when multiple users are involved in editing the same file simultaneously. This can result in potential operational and compliance risks.

01

Control of the workbook version, including a controlled release process to users, either in Excel form or via a low-code UI.

02

Tests that can be automated, allowing users to check and validate changes to either logic or data are correct before checking in and re-sharing the latest version of a critical workbook or function.

The Issue

How Schematiq helped a Financial Services client overcome their operational risk challenges

Legacy finance systems were unable to connect to data sources, resulting in slow manual processes that, in some cases, led to critical errors.

 

  • Source data was routinely ‘copied and pasted’ into workbooks as part of an entirely manual workaround process.

  • The introduction of human error meant incorrect payments were often sent to clients, increasing reputational risk.

  • Limited audit capability and quality checks reduced confidence in the accuracy of results.

  • Senior Management was unable to evidence historic decisions, leaving them vulnerable to meeting SMCR requirements.

The results achieved when utilising Schematiq’s EUC risk management platform

Data on a Touch Pad

Schematiq enabled our client to:

 

  • Gain Senior Management’s confidence in the Finance department’s process outputs.

  • Retain Excel, meaning the finance team members did not need to learn a new system, saving both re-platforming and training costs and enabling quicker results.

  • Reduce input required from team members in Finance, Risk Management and Portfolio Management areas.

  • Add granularity and insights on client and Finance reporting.

  • Mitigate a historic audit point raised by an auditor against the operational risk of a single Excel model.

Other Use Cases

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