PKO Bank Polski guards itself from risk with SAS®
With SAS® OpRisk Management, leading bank becomes one of the first in Poland to adopt the advanced measurement approach.
One of the largest and oldest banks in Poland – and one of the country's most recognized brands – PKO Bank Polski offers banking and investment services to domestic and foreign entities, individual clients, large enterprises and government institutions.
Risk management rules under Basel II require banks to incorporate additional elements, including operational risk, into their solvency ratio. To comply with the provisions, PKO Bank Polski began using simplified methods of calculation of the capital requirement for operational risk, such as the basic indicator approach (BIA).
The bank deployed a range of methods and procedures for operational risk identification, assessment, monitoring, restriction and reporting. Internal rules were adopted to regulate the classification and registration of operational events.
For several years, the database was maintained in a Microsoft Excel spreadsheet. The collected information was aggregated and reported in a quarterly summary report.
The reporting process was laborious and time-consuming. Selecting information for individual report sections and classifications, as well as updating and confirming previously collected information, required extensive manual effort. This approach produced inadequate results, given the size of the institution.
In pursuit of regulatory approval
Along the way, the bank experienced difficulties with the availability and management of information on events as well as the requirements for implementing the AMA. Its manner of collecting and distributing risk information was not fully efficient and did not ensure adequate data quality.
The scope of registered information was limited, and the general functionality would be unable to suit the bank's future needs. Moreover, there was a risk that the applied IT solution would not receive the required approval from the banking supervision authorities who oversee the AMA.
PKO Bank Polski needed more comprehensive analytical and reporting tools dedicated to operational risk. The bank began its quest for an IT solution that could meet its needs.
The aim of the implementation was to provide the bank with a complete IT environment to execute major operational and analytical processes related to risk management.
Also, SAS implemented functionalities that aligned with PKO Bank Polski's needs concerning the European Banking Authority's common reporting guidelines (COREP), compatibility with needed databases, and an extended catalog of statistical distributions.
Quality improvements, remarkable benefits
With the SAS platform in place, PKO Bank Polski achieves a significant improvement in operational process quality. The solution enables effective collection and processing of risk data and an effective and active use of such data in current tasks. From senior executives and managers to analysts and branch employees, thousands of staff members are using and benefiting from SAS OpRisk Management.
A glimpse ahead
The results illustrated in this article are specific to the particular situations, business models, data input, and computing environments described herein. Each SAS customer’s experience is unique based on business and technical variables and all statements must be considered non-typical. Actual savings, results, and performance characteristics will vary depending on individual customer configurations and conditions. SAS does not guarantee or represent that every customer will achieve similar results. The only warranties for SAS products and services are those that are set forth in the express warranty statements in the written agreement for such products and services. Nothing herein should be construed as constituting an additional warranty. Customers have shared their successes with SAS as part of an agreed-upon contractual exchange or project success summarization following a successful implementation of SAS software. Brand and product names are trademarks of their respective companies.
Copyright © SAS Institute Inc. All Rights Reserved.
PKO Bank Polski
Comply with Basel II requirements and obtain a complete technological platform to execute major operational and analytical processes related to risk management.
SAS® OpRisk Management
The bank is better equipped to protect its business, improve its operational risk management and optimize its workflow.