Analytics means many things to different people; the key is not in the definition, but rather in how the results are utilized to make decisions in your institution. Regulators and banking industry “experts” have been telling bankers that in order to meet both industry regulations and to better understand and manage risk, it is imperative to utilize various type of analysis (i.e. predictive) as a basis for your risk and performance management processes. There is no question as to the importance of these types of analytics; but without understanding how and why your institution got to its current financial condition, you may be doomed to repeat or even compound risks that could lead to increased negative results.
This whitepaper includes illustrative examples of analytical scenarios including:
- portfolio level vs individual level analysis
- officer level analysis
- portfolio performance dashboards