Challenge
An important company operating in the insurance sector needs to innovate and improve strategic planning processes, integrating the information produced by the multiple functions responsible for prospective assessments of corporate management (e.g. Planning and Control, Capital Management, Solvency Pillar II, Finance…) into a single information system, using the SAP Business Planning & Consolidation application software (SAP BPC).
Project Objectives:
- to improve and track strategic planning processes
- to integrate different areas limiting operational risk to the benefit of a common, certified and shared database, for analysis of planned scenarios and prospective company evaluations
- to set the cascading of objectives
- to set up simulations and what-if analysis
Solution
The software application solution implemented is SAP Business Planning & Consolidation (BPC), which is characterized by its high ease of use, the flexibility of data model, the integration of final data, the ability to support the process planning with the possibility of executing managerial actions and what if analysis and multiple process interactions, for the availability of a multilevel reporting on a single database and for the availability of data compliant with company IT standards.
The solution was divided into different processes (modular areas), implemented according to a cascade model and having different areas of responsibility:
- Final process
- output: management balance sheet for the monitoring and analysis of deviations, according to the different accounting principles with quarterly frequency
- responsibility: administration and management control area
- Strategic Planning Process
- Output: group “rolling” industrial plan, prepared in accordance with various accounting standards on an annual basis
- Responsibility: planning and control area
- Own Risk and Solvency Assessment Process
- Output: report on the solvency of the company and of the corporate group, according to the Solvency II regulation
- Responsibility: planning and control area and risk management
- Risk Adjusted Profitability Analysis
- Output: prospective assessments on company profitability and on the consequent capital requirement through “Risk-Adjusted” KPIs
- Responsibility: planning and control area and risk management
Risultati
- The processes have been rationalized and tracked using process models/workflows saved in the system
- The data was integrated and automatically fed with limitations of the operational risk of the end user and the fast-closing of the process
- Possibility of inserting objectives and hypotheses of action for individual companies of the group and for single organizational units, consistent with the macro-objectives imposed by the top management (e.g. budget letter)
- Possibility of obtaining different alternative scenarios by acting on the characteristic levers of each business sector
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