CNCE reduces risk with SAS®

Caisse d’Epargne is the third largest French banking network with 26 million customers, 4,740 agencies and 44,400 employees. CNCE uses SAS to reduce operational risk. With SAS, CNCE creates operational risk scenarios for better control before and during a crisis.

Customer Success Video

Check out this video to learn more about CNCE and its successes with SAS. 

View Video

• Windows Media Player
• Real Player

(Runtime: 3 mins., 32 secs.)

Dan Chelly
Head of Operational Risk
CNCE

View Video

• Windows Media Player
• Real Player

---

(Requires Windows Media Player 6.4.7 or higher or RealPlayer 6 or higher)

Managing risk is critical to the success of a bank, particularly in Europe in light of Basel II regulations. The goals of Basel regulations are to strengthen the financial market as a whole in order to avoid any systemic risks. Banks need to manage risk to bolster those markets and CNCE does that with help from SAS.

“Our goal is to improve the operational risk management culture,’’ says Dan Chelly, CNCE’s Head of Operational Risk. “The banking industry is highly regulated. It is also highly interconnected. Controlling risk is critical to preventing a domino effect.”

But banks want to control risk without hindering profit. The key is knowing how much equity needs to be on hand at any given time. “The more quality we have in terms of the process means the more value we can give the shareholders by protecting profit and equity,” says Chelly, who notes that the bank was already using SAS for credit scoring.

SAS helps by drawing in data from external sources for compiling risk scenarios and then allowing the bank to build models with the data. CNCE is currently building models addressing flooding along the Seine River. SAS draws in data from other floods in other cities including the Prague River flooding in 2002 and Hurricane Katrina flooding in 2005.

“The SAS database helps us quantify the costs of incidents. How much would some items or some incidents cost if they occur? We can leverage this information that our companies and others have lived through,’’ Chelly says.

SAS was a pleasure to work with says Chelly, “We identified a number of scenarios where we wanted to go one step further than what was offered. And SAS really took us by the hand and helped us with the approach.  SAS has a real will to satisfy the customer.’’

The end result: “With SAS, we can save a lot of time. The data is presented so well it is almost like you don’t have to think about it.”

Copyright © SAS Institute Inc. All Rights Reserved.