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Implementing OFSAA –

Application Configuration &
Design

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and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. It is intended for information purposes only. or functionality. and should not be relied upon in making purchasing decisions. and may not be incorporated into any contract. It is not a commitment to deliver any material. The development. code. release. Oracle and/or its affiliates.The following is intended to outline our general product direction. Proprietary and Confidential . 2 Copyright © 2012. All rights reserved.

All rights reserved. Proprietary and Confidential .Agenda  Understanding the Requirements– use case  Identifying configuration areas  Metadata Design  Metadata Configuration  Question and Answers 3 Copyright © 2012. Oracle and/or its affiliates.

undrawn amount. The exposure at default for OTC derivatives is based on the following formula – (MTM amount + notional amount* add on percent) • Reiterate the business understanding using a formula • For OTC derivative EAD = (MTM Amount + (Notional Amount * Add-On Percent)) • For Other products EAD = (Outstanding Principal Amount + Accrued Interest – Specific Provision + (Undrawn Amount * CCF)) 4 Copyright © 2012. Oracle and/or its affiliates. Proprietary and Confidential .Understanding the Business Requirements • Understand the requirement (Example 1) – The exposure at default for loans and mortgages is equivalent to outstanding amount. Provision amount is to be excluded from the same. The undrawn amount has to be multiplied with credit conversion factor. All rights reserved. accrued interest.

Headcount data to be provided as separate interface to OFSAA as per prescribed format.  Example-2: Allocation of communication expense booked in Head office to different business units like Retail banking.Contd. HR.Understanding the business requirement…. Treasury and Corporate banking based on headcount(HC) . Oracle and/or its affiliates. Proprietary and Confidential .  Reiterate the business understanding using a formula: Retail Banking: [(Total Communication Expense) / ( Retail BNK HC/ Total HC)] IT : [ (Total Communication Expense) / ( IT HC/ Total HC)] HR : [(Total Communication Expense) / ( HR HC/ Total HC)] Treasury : [(Total Communication Expense) / ( Treasury HC/ Total HC)] Corporate BNK: [(Total Communication Expense) / ( Corp BNK HC/ Total HC)] 5 Copyright © 2012. All rights reserved. IT.

Oracle and/or its affiliates.g.Solution Development Methodology Analytical Solution Development Methodology # 6 Phase Typical Activities 1 Solution Conceptualization a) Identify Strategic Business Questions that need to be answered by the solution b) Identify Analytical Domains .e. Proprietary and Confidential . All rights reserved. Measures and Attributes involved b) Determine attributes that are (i)typically available from input systems in a financial institution (ii) need to be captured through a workflow c) Determine business rules needed to compute the measures and statistical models to be used for estimations Copyright © 2012. for a cards analytics domains like Delinquency Analysis. Concentration Analysis etc c) Identify typical reports/dashboards sought by Business users in each Analytical domain 2 Functional Design a) Breakup each analytical domain into Business Dimensions.

Methodology.Solution Dev. All rights reserved. Contd Analytical Solution Development Methodology # Phase 3 Data Model Design & Review Typical Activities a) Identify data elements (i) that are to be sourced for base measures (ii) that are to be sourced for deriving computed measures/input parameters needed for statistical models b) Gap Analysis with existing data model c) Add new entities and attributes needed to data model with ERWIN d) Review of Data Model changes with Product Management teams 4 7 Metadata Design & Review a) Design specifications for (Complete Metadata Sheet) 1)Reports==>Cubes/Marts==>Runs/Processes/Rules/Forms/Workflows/Models==>Maps/Da tasets/Dimensions/Hierarchies/Business processors /Measures/Computed Measures 2) Load/T2T/DQ checks 3) Operations==>Batches b) Make sure existing base metadata is re-used for the new solution c) Review of Metadata specifications with Product Management teams Copyright © 2012. Oracle and/or its affiliates. Proprietary and Confidential ..

Setting application preferences. Perform solution configuration ==> All definitions from the metadata sheet configured using OFSAA Frameworks . User Manual..FTP.Solution Installation Manual. Contd Analytical Solution Development Methodology # 5 Phase Solution Configuration Typical Activities a) b) c) d) 6 7 8 Solution Testing Solution Release Upload Data Model Load data into staging layer and perform reconciliation between instrument data and GL data if required. Business rules(ALM. Training Guides. Methodology. a) Preparation of Test Plan and Test cases with real-life scenarios b) Testing of Configurations as per Test plan a) Documentation . Oracle and/or its affiliates. Help Files b) Formal QA of the Solution c) Formal Release certification Copyright © 2012. All rights reserved. Proprietary and Confidential . PFT) needs to be configured based on application to be implemented.Solution Dev.

Proprietary and Confidential .Requirements Analysis Phase-Objectives • • • • 9 This phase deals with the gathering of information on the bank’s business requirements for the OFSAA applications to be implemented These business requirements are collated either through questionnaires and interviews/meetings or through previously prepared Business Requirements Documents The output of this process forms the basis for the implementation team to configure the OFSAA applications as per scope and comprises: • Business Requirement Study • Gap Analysis • Data Requirement Study The objective of the Gap Analysis is to identify the gap based on the requirement and the out of the box features of the solutions. Copyright © 2012. All rights reserved. Oracle and/or its affiliates.

All rights reserved.Objectives • • 10 This phase focus on configuration of OFSAA product as per bank’s business requirements. Proprietary and Confidential .Configuration Phase . The activities performed in this phase are: • Business Solution Harmonization • Data Model Harmonization • Information process Design • Batch Design • Meta data Configuration Copyright © 2012. Oracle and/or its affiliates. The outputs from the previous phase will form the basis for the activities in this phase.

Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential Business Quality Checks – Predefined Data Quality checks Value Code Mapping Checks / List of Values (LOV) Checks Duplicate Checks • • • • • Referential Integrity Checks Null Value Checks Zero Checks Range Checks Distinct Value Checks (Spread across a given expected LOV) .Testing Phase Data Certification Testing • • Source Data Certification refers to the Data Load & Data Quality Checking at the entry point of the ETL Module ON the files received from Data Sources Objective of Source Data Certification is to ensure a Quality set of Data from Sources prior to any Functionality Testing of the Solution Types of DQ Checks Standard Checks • • Quality Checks Header Trailer Validity Checks Loading Threshold Checks • • • 11 Copyright © 2012.

contd. Proprietary and Confidential The Actual Acceptance Testing by the end user User Training of OFSAA applications and testing process MUST precede this User Acceptance Plan should be prepared by USERS in advance and Acceptance Criteria should be agreed & documented Finalize a schedule for the UAT A Support team to be in place. and also Global Support will be informed of the start . Oracle and/or its affiliates. All rights reserved.Testing Phase …. Pre-fulfillment Testing • • • • • • • 12 User Acceptance Testing Complete Internal Testing prior to start of UAT • No User Involvement • Will use actual source extracts Will also include some amount of • performance Validations Prepare Pre-Fulfillment Test Plan with Test Cases for different logical days This is full E2E (end to end) Testing of the• final delivery to the customer without• Business User Involvement Will use actual source data of different logical periods – Use Certified Source Data from the Source Data Certification Testing which has been signed off Copyright © 2012..

All rights reserved. Proprietary and Confidential RESULTS AREA Step 7: Reporting Impact •Ensure data movement from processing to results area •Update the OBIEE reports based on the requirement of the bank .Analytical Processing APPLICATION-SPECIFIC PROCESSING AREA STAGING AREA Step 1: Identify the new data elements •Identify the tables and columns which needs to be modified •Use ERWIN to update the data model •Upload the data model into Step 2: Modify the data requirement steps Step 5: Create Metadata •Technical Metadata •Business Metadata •Rule Change •Batch Modification Update the data model dictionary Step 6: Execute the batch to process data Step 3 : Run Data Quality checks •Run is executed to process data •Rules are executed one by one based on the precedence •Define DQ rules for the additional data elements •Create the same using the DQ Framework Step 4: Move Data via T2T to Processing & Results •Use data integrator to modify the T2T definition to add the data elements 13 Copyright © 2012. Oracle and/or its affiliates.

Analytical Processing Metadata T2T T2T Rule Engine Etc Step 4 Step5 Step6 Step7 DQ Step 2 Step3 T2T Frameworks Step 1 Framework Instructions 14 Copyright © 2012. All rights reserved. Proprietary and Confidential Step8 Process Steps Run framework Processing . Oracle and/or its affiliates.

All rights reserved. mapping • Define process – rules. Oracle and/or its affiliates. predecessors • Define run – process • Define reporting layer changes 15 Copyright © 2012. target. Proprietary and Confidential .Metadata Configuration • Define data model change – entities. length. hierarchies. destination. attributes.measures. transformation • Define business metadata . dataset and business processor • Define data transformations • Define rule – source. type • Define table to table mapping – source.

Decomposing the Business Requirements into OFSAA Metadata – Sample Case # 16 Calculation Step Component 1 Exposure data load from staging to the central fact tables 2 Create join condition between the required dimension and the central fact table 3 Basel II Product Type Classification 3a. Define the tree structures based on Bank Products and Basel II Products Hierarchy 3b. Define Marked to Market Amount Measure 4c. Build the mapping between the Bank Products and Basel II Product Types Type II Rule (Reclassification Rule) 4 Define Business Objects 4a. Proprietary and Confidential Type I Rule (T2T) Data Set . Define Add-on Measure 4d. Define Notional Principal Amount Measure Copyright © 2012. Oracle and/or its affiliates. All rights reserved. Define EAD Measure 4b.

Proprietary and Confidential Rule . Oracle and/or its affiliates. All rights reserved.Decomposing the Business Requirements into OFSAA Metadata – Sample Case Sl.No 17 Calculation Step Component 5 Define Transformation Logic 5a Define expression for the EAD calculation for OTC Derivative Products Business Processor 5b Define expression for the EAD calculation for non OTC Products Business Processor 6 Define the EAD calculation 6a Define the logic for EAD calculation for OTC and non-OTC products Copyright © 2012.

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