The Road to the SDGs

PURPOSE X Becoming a developer-focused institution is at the core of IsDB’s new business model and P5P. Successful implementation of this requires an agile risk management framework and architecture supported by enhanced analytics. IsDB has therefore commenced the ongoing implementation of an Enterprise Risk Management (ERM) solution as one of the key initiatives of the P5P. X The ERM programme requirements are based on IsDB’s risk management architecture, which has two pillars: – Capital adequacy management – Liquidity and balance sheet management. X Both pillars require a robust enterprise- wide stress-testing framework to manage emerging or unforeseen risks and vulnerabilities, in addition to a financial and risk-reporting dashboard that can inform proactive decision making. METHOD X The ERM programme comprises: – An integrated risk and finance DataMart – Financial projection model – Advanced asset liability and proactive profitability management – Risk and financial analytics – Risk reporting – Economic capital calculation – Enterprise-wide stress testing solution – Dynamic finance and risk management dashboard. X Successful implementation of the ERM solution is expected to strengthen IsDB’s data governance and enhance financial and risk management capabilities, resulting in long-term financial sustainability. X The selection of the ERM solution vendor was conducted via a comprehensive request-for-proposal preparation, vendor due diligence, evaluation and selection with the support of a specialised external consultant. X The broad nature of the project, involving multiple business stakeholders, vendor product solutions and integration with IsDB’s existing systems and platform, is an extremely complex undertaking, critically reliant on accurate data and integrated reporting. As such, it demands the alignment of stakeholders, vendors and IT, as well as tight control of interrelated processes such as project management, business processes, data governance, Enterprise Risk Management Programme I sDB has created a comprehensive roadmap to strengthen its risk management capabilities by implementing integrated, advanced risk and financial management tools and solutions to enhance analytics and preserve financial sustainability and long-term resilience for the benefit of its MCs The project involves multiple business stakeholders, vendor product solutions, and integration with IsDB’s existing systems and platform, relying critically on accurate data and integrated reporting [ 200 ] SDGs