Tags: BearingPoint, Max Duprat, customer centric, HCP

Tags: BearingPoint, Max Duprat, customer centric, HCP

The November 2008 issue of BearingPoint’s Financial Services Technology Journal offers effective, up-to-date thought leadership on IT cost planning. From the critical right-now technologies (e.g., service-oriented architecture, cloud computing) to practices that involve outsourcing and out-tasking (i.e., outsourcing simple tasks) to new paradigms in service models, executives and technology leaders should find this journal to be an invaluable resource in their efforts to improve their organizational operating leverage.

Tags: Julien Courbe, Financial Services, financial services, Financial Services

This regulation will ultimately create pressure on financial institution profitability, resulting in lost fee and interest revenue and increased risk management challenges. UDAP will also require costly modifications to systems and processes throughout the account lifecycle. The financial impact on each institution depends on existing policies & practices. If a financial institution has not yet calculated the financial impact of this regulatory change on their income statement, BearingPoint has created a proprietary model to perform a high level calculation that is directionally accurate.

BearingPoint has created an organizational impact assessment tool to assists our clients in identifying the processes that impact them specifically. Organizations need to align their budgets and their resources to be prepared to support UDAP compliance efforts in 2009. Every institution should start investigating revenue enhancement opportunities and BearingPoint is here to ensure you’re fully equipped when this regulation becomes law.

Tags: BearingPoint, Chris Estes, Eileen Perrin, OTC, NCUA, Federal Trade Commission Act, UDAP

The major change all companies need to make is to dispose of non-working assets. If an asset hasn’t been profitable in over a year, it’s time to move on. Another change that is focused on is the need for regulatory compliance. Each and every organization needs to emphasize regulatory requirements efficiently. Lastly, you need to “shrink smart” and manage risk management in an appropriate fashion.

Throughout this podcast you will learn the “right” way to cut expenses and how to keep the regulators happy. We also found that there are many financial institutions that have remained successful despite the recent downturn. Tune in to learn the secret to their success and ways to bring their strategies into your own environment.

Tags: BearingPoint, Larry Taylor, financial services, shrink smart, risk management, Credit Crisis

When completed, the project took small-business banking loan origination to a new level. An inefficient manual, paper-based system was transformed into an intelligent Web-based, front-end loan capture system used by bankers in the field. The project also features automatic interactions with back-office systems. In the first three months, the initiative became a field-tested success.

Today, it delivers straight-through processing, significantly decreasing front-end submission times, reducing decision times from up to six hours to less than 10 minutes—in most cases—and significantly lowering administrative overhead and application processing costs.

Finally, the net present value of the overall project was projected at U.S.$3.3 million, surpassing business case estimates. Tune in to this podcast to learn more about this engagement and how BearingPoint can assist you.

Tags: BearingPoint, credit crisis, Paul Ringmacher

The single most important thing that needs to be addressed is the realization of how much capital is being used at a given time. Most people don’t realize how much capital they’re using because of their lack of transparency, and when they finally realize it, it’s too late. To come out of this, we’re asking people to watch very closely how much capital they are spending and to cut any unnecessary costs. This can be done by acknowledging the need for better data management and risk capabilities. BearingPoint has addressed this with a seven point analytical strategy that can assist clients with understanding what changes they need to make. In the podcast, you will hear important points, such as how to manage data, estimate risk, change current business processes and how to implement an integrated risk and performance framework.

Clearly this crisis has exposed a number of weaknesses in risk management across the sector. Most organizations still have basic issues around risk and transparency. This podcast addresses key areas that are lacking in the risk management sector; such as understanding your risks, what risks are making you money and how effectively your trading machine is working? There are many changes that need to be made across the entire financial services sector, and the key points that are addressed in the podcast can help you itemize an action plan to take the appropriate measures to ensure future success.

Tags: BearingPoint, Brian Hart, credit crisis

For future success, key executives should outline clear incentives, process and partnership changes. These three elements will keep a disaster from happening again. For example, as loans are being put together, we need to ensure that securitization documents need to be reviewed and possibly rewritten; a great case for proper process changes. The investors who own the loans need to form a tighter relationship to outline some common incentives. This will define a clear partnership where incentives are agreed upon. These investors also need to have leeway. Right now it’s contractually based, but there needs to be more agreement to ensure a successful outcome.

By making the necessary changes outlined, it will provide the end customer with more flexibility and stability in the future. This flexibility might provide someone with the opportunity to stay in their home, or different options to make payments. This will also ensure that the end customer has provided a lot more documentation prior to being granted funds they’ve requested. This crisis has taught us that we need improved risk management and reporting both internally and externally to ensure that risk is managed appropriately and that everyone involved is up-to-speed on how and why the transaction transpired.

Tags: BearingPoint, credit crisis, Lowell Alcorn, financial services, loss mitigation

There are multiple lessons that can be learned from our current financial situation. Companies need to focus on transparency within their organization and develop a culture that is more risk sensitive so that risk governance takes on a more important role than it has in the past. We are learning that had senior management been aware of their data and level of risk, they might have seen what was emerging within their organization. To ensure we don’t ever see another crisis at this magnitude, companies need to instill a risk base culture that has a set shared of values among its employees. This doesn’t happen overnight, but there are steps that can be taken to head in that direction.

First and foremost, the data challenge needs to be made head on. If we’re going to eliminate this challenge in the future, we need to conquer this challenge now. The governance challenge needs to also be met. This is where BearingPoint can assist. We have developed numerous solutions to assist our clients with their current situations. We are putting a focus on what can be changed within a current organization. There are certain elements that if put into place now, can help institutions with their future struggles.

Tags: BearingPoint, credit crisis, Sandeep Vishnu, subprime crisis, risk strategies, market survival, financial services

So what actually caused the crisis, especially within investment banks? The problem was too much leverage. These banks did not have sufficient capital to support the size of their ownership positions. When the position turned against them, both realized and unrealized losses, it wiped out their capital. It really comes down to the fact that their risk management systems failed the senior management of these giant organizations. It was so complex that the firms could not keep up with the changes.

BearingPoint has taken the proper measures to ensure their clients are being offered the most efficient solutions to deal with all the turbulence in the market. We offer a wonderful suite of solutions, such as our Risk Compliance and Security practices Trade Performance Solution that is assisting both buy and sell-side clients with all their risk-related issues. Our banking practice has also just introduced their Default Loan Loss Mitigation Solution, which is assisting clients with reducing the costs of defaults and foreclosures with investors. BearingPoint has been actively engaged with all their clients to ensure they are offering the most efficient and cost effective solutions to respond to this financial crisis and prepare for a successful future.

Tags: BearingPoint, Global Markets, Peter Horowitz, credit crisis, financial services, lending standards, Risk Compliance

The ILM Solution is also heavily used for E-discovery. With E-discovery costs on the rise, organizations are in need of a solution that assists with gathering only the necessary data, and not just a compilation of tons of document that are not needed. With every litigation suite, there is only a certain amount of documentation needed. Clients can experience massive cost decreases when just the necessary data is pulled.

With the many positives of designing an effective ILM solution come some struggles. Firms have legacy data all over the place. It is a very big obstacle trying to balance all of the data, plus input anything new. Another challenge is the need for a lot of governance. With all of the legalities, it’s extremely important to know the regulations and compliance issues up front. Lastly, an organization needs guidance on how to initiate this solution and where it should end. This is where BearingPoint can assist. ILM is a journey, but a journey worth pursuing. This journey will result in massive cost reduction and extreme efficiency for all your storage needs.

Tags: BearingPoint, Pat Tobin, Information Lifecycle Management, ILM, E-discovery

The bottom line is people are beginning to realize the effective use of BI and how it can transform their business and gain the competitive advantage. However, every organization is different and faces unique challenges in defining their BI vision and executing on it. Many companies are dealing with duplicate data, missing relevant data and no enterprise view of their database. The key is to learn how to cut through the chaos.

Within an organization, everyone can take part in making BI work for them. It’s important to map out a strategic plan and understand ways that you can utilize your existing platform. BearingPoint is experienced in understanding the obstacles and mapping out a plan that results in success. Business Intelligence will keep evolving. It’s important to get a healthy perspective from an outside consultant, like BearingPoint, to stay abreast of what’s going on in the marketplace. Our bottom line is to deliver value to everyone we work with.

Tags: BearingPoint, Business Intelligence, Greg Molley, BI

Our fraud management solutions assist organizations with ways to uncover fraudulent claims, how to educate employees of the possible risks and best practices around fraud management in the workplace. Many companies are utilizing internal and external workshops to educate their employees, while others are outlining certain processes and procedures. There are also many electronic fraud detection tools that companies are beginning to use to deal with this type of unlawful behavior.

The role of fraud management has evolved greatly over the years. Twenty years ago, there were five fraud investigators in the market, now there are more than 150. Fraud management is mainly organized in a traditional versus non-traditional method. To identify which is more appropriate for your organization, our experts can identify the problem and offer an appropriate solution. With the rise in fraudulent behavior, expect fraud management to be a top priority in financial services over the next few years.

Tags: BearingPoint, Delia Klause, fraud management, Fraud

The convergence of business and IT has offered the advantage of merging the respective strategies of each. This collaboration is a must when aiming to reach a competitive advantage through application IT. With increasing IT costs over the last year, there’s been significant pressure to deliver. By joining business and IT, the related business advantage is obvious; important decisions are jointly agreed upon by the board members, business management and the IT department.

In today’s market, organizations need to take proper steps to solve their IT governance problems. They must establish a focused management team and have control of projects, investments and IT services. This will create short term impact and better results for future success. Stringent IT Governance can improve the competitiveness and adaptability of a company. The establishment of IT Governance is a very challenging obstacle, but the end result is always a success.

Tags: BearingPoint, Marcel Nickler, IT governance, IT, convergence

The key step to enhancing information is to look at the situation across your entire company to evaluate where the problem lies. Once you’ve focused on the business requirement, you can easily see where the technology fits in. When a company has enhanced information and data, they have a better chance at success. The organization also must have the ability to react to market changes, and better yet, be proactive.

Since the mid 1990’s, BearingPoint has been involved in multiple corporate performance measurement initiatives aimed at providing better management of information. It approaches this task in various ways: Focusing on strategy and design, sometimes even building the end solution from the current situation, and being tasked with end-to-end solutions, BearingPoint typically has teams that are both functionally and technically rich, leading to a great partnership for success.

Tags: BearingPoint, Jaime Garza, U.S. interest rates

For a company to capture the potential offered by speed to market as a competitive capability, they must be aware of the new and updated products being offered in the marketplace. This means that you can not only respond to the demands, you need to anticipate them by continually developing and testing new products and services. A company’s ability to develop and offer new products quickly is the key to satisfying the needs and demands of the marketplace.

Speed to market can deliver improved competitive capability to a company if it is done correctly. Involving the right people, systems and processes to identify where, what and how to change is critical. Although it is not easy or necessarily fast to do, improving speed to market at a company can generate great benefits to its bottom line, market image and competitive abilities.

Tags: BearingPoint, Matthew O’Mara, insurance, Speed to market

ColdSpark helps the world’s most demanding companies harness the power of email to create business value, while ensuring security, compliance, performance and management for email networks and systems. As the leading provider of enterprise solutions and platforms for email processes and delivery, ColdSpark helps BearingPoint assist its clients with saving money, making money and addressing security concerns, amongst others. By utilizing a holistic approach, ColdSpark offers great scalability and flexibility around the client’s current infrastructure.

The relationship between BearingPoint and ColdSpark provides clients with solutions that drive revenue, strengthen relationships with customers and ensure compliance issues are addressed, improving security and optimizing performance while growing revenue and cutting costs significantly.

Tags: BearingPoint, Terence Oi, ColdSpark, Scott Brown

Steven Kahn is a senior manager in BearingPoint’s commercial services business systems integration practice where he works to define and deliver value-driven SOA and BPM solutions. He specializes in enterprise architectures with specific emphasis on enterprise integration and business process management.

Tags: Steven Kahn, Service Oriented Architecture, BearingPoint

Tags: BearingPoint, John Gill, Information Management, BI, Performance Management, Analytics, IM, Business Intelligence, Performance Management

With a large number of borrowers being threatened with the recent credit crisis, there is a lot at stake. Many individuals are at risk of losing their home and/or business and the servicer is stepping in to help remedy the situation. With assistance comes some monitoring on the borrowers end. Anyone who has contact with a servicer needs to be concerned with how they are managing the relationship. Luckily, there are resources such as data reports that the servicer is required to supply. It’s essential that the stakeholders talk to the servicers, those that are managing the operations and the default managers. The most important thing is that a stakeholder needs to be truly sure that they understand the risks and how they can manage those risks and take proper precautions. If they don’t have the expertise, they need to find someone who does.

That’s where BearingPoint comes in. We can assist the client with outlining the risks and determining how well their servicer is managing their assets. Our new thinking in this space can help ensure our clients are meeting their legal and market obligations, as well as profiting financially in this ever changing world.

Tags: BearingPoint, Marianne Lamkin

In a situation where the reputation being portrayed is incorrect, a company must have the ability to quickly respond to such criticism, prior to any real damage being done. The key to preventing such a travesty is to understand the sources of your risk and determine what the potential impacts would be. There are also many ways to determine how a company is currently perceived, such as its stock price, customer acquisition and customer patterns. These are clear indications of your favorability and a clear indicator if changes need to be made.

Key executives need to know how their company is being displayed in the marketplace and how they are being evaluated through a stakeholder prism. Many times, a company is not aware of its perception in the marketplace until it’s too late. With all the new technology available, it’s easier than ever to monitor your company’s reputation. It’s the responsibility of the executives to have a clear message relayed to their employees so that everyone assembles under one culture. It is only then that people will band together to ensure the company’s perception remains positive and “outs” anyone who strays from what has been clearly outlined as the company’s standards.

Tags: BearingPoint, Larry Taylor

A virtual desktop is one where all computing happens remotely. It contains a very simple screen that allows you to replace the heavy workstations that are currently being used by the majority of companies. Virtual desktops provide a “virtual” space, in which the user can place all their application software. The most compelling argument that vendors use to convince organizations to buy in to this solution is the fact that all the data and applications are in one secure location. Someone can still manage all of their employee’s desktops, even when the computer is off.

The recent trend has been for companies to move to Windows Vista. This allows an organization to keep the same hardware, which is a viable solution to cut costs. So, why are some people hesitant to invest in this? The answer seems to be that virtual desktops are not a “one size fits all” solution - but there are ways for easy implementation, which is where BearingPoint comes in. We assist with the pain points or doubts that an organizations goes through. It is our goal to assist with the development of a strategic roadmap that brings the client all the way through the deployment. We bring our expertise to the table to ensure the transition is smooth and that our clients are on their way to cost-saving success.

Tags: BearingPoint, Laurent Mandorla, virtual desktops, virtualization

The question that is most asked is, “How can we prevent it?” While rogue trading cannot be prevented, one can change the environment so that there is less incentive to engage in this act. In most organizations today, there is enough incentive to continue this type of trading because the proper controls have not been put into effect. An organization needs to be aware of activities that are outside of the norm and be knowledgeable of significant gains and losses. With the proper controls, a rogue trader can be identified and stopped before irreparable damage has occurred.

With most laws, there are ways to police them. We need to do this with trading, too. The controls need to be visible so that employees know that people are looking out for this type of behavior, but not too visible where an employee can identify ways to get around it. The most important element of policing this type of behavior is data mining. With the right technology, data mining can identify any odd behavior. The investment in the proper technology will allow companies to identify the culprits once they have engaged in unlawful behavior and before the company’s image has been tainted.

Tags: data mining, Andy Sanderson, BearingPoint, Rogue Traders

Sourcing and procurement cost takeout is very easy to understand at the strategic level. One needs to identify where an organization can consolidate spend, use enterprise leverage to negotiate lower unit cost, and then direct the users to purchase from the new enterprise contract. However, in a large global institution, with a fair degree of autonomy in the business units, these tasks can be very difficult to implement. Many companies use leading practices in isolated pockets throughout the enterprise. We look at Sourcing and Procurement across 11 different attributes using an enterprise maturity model to help clients understand their position relative to leading industry practices, determine the maturity level goals of the client and develop a multi-year roadmap to achieve those goals.

For those who want to reduce cost and improved performance, there is some solid advice that we can offer. Sourcing and procurement cost takeout is very easy to understand at the strategic level, but very difficult to implement in a large global institution, with a fair degree of autonomy in the business. BearingPoint informs their clients to focus on four key areas, if they want to achieve their cost takeout goals. The four areas are to develop a case for change, align executive management around the case, create a multi-year roadmap and possibly the most important, make sure the project has a disciplined benefits realization process in place. The users and stakeholders must see the financial benefit of the transformation, because everyone will ask themselves, “Is the pain worth the gain.” Executives need to see the quantitative analysis to say “yes” - the pain is worth the gain.

Tags: BearingPoint, Bill Stotzer

The employee on-boarding process is a great concern for most organizations. The concern being that there is not a single owner of this process, so it is essential to get every responsible party involved. A company needs to ensure that groups such as procurement, real estate for seat assignment, and IT for computer set up are all engaged. In the past, an email was sent company-wide and the manager of the new hire assumed all tactical objectives would be completed. As many companies soon found out, this was hardly ever the case.

BearingPoint has partnered with Oracle to provide a solution to on-boarding that involves a precise architecture that serves as the foundation of your central system. This architecture provides a single point of access and serves as a new hire portal for both the employee and the company. This system serves as a tracker for what needs to be done and what has been completed to ensure a smooth transition for your new hire.

Tags: human resources, BearingPoint, Randy Nease, on-boarding, Oracle