Assessment Details
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Assessment title |
Abr. |
Weighting |
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CCI Case Study |
PRES1 |
50% |
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Pass marks are 40% for undergraduate work and 50% for postgraduate work unless stated otherwise. |
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Task/assessment brief: |
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1. Background Cymru Capital Investments (CCI) is a mid sized bank working in corporate and investment Banking. The bank has offices located throughout Europe and USA employing 20,000 people in over 500 offices, and is regulated by the Financial Services Authority (FSA). The bank has enjoyed rapid growth in the last five years and at the end of the last financial year recorded a profit of £2.9 Billion. CCI’s core business is securities underwriting although it does also trade in derivatives, foreign exchange and commodities. The bank underwrites newly issued securities (Bonds and shares) from corporations and governments on the capital markets. In addition, CCI also underwrites loans and credit to various customers through a detailed process of credit analysis, this is known as Bank underwriting. The bank’s actuaries are the employees responsible for assessing the risks of its investments and subsequently pricing the products and services sold to clients.
2. The use of Information Systems at CCI for underwriting CCI is a typical investment bank, making extensive use of information systems to support its business functions. The bank has a formal system for officially recording agreements between CCI and clients called the “Deal Capture System”. The bank also has a bespoke financial modelling system called “Aladin model builder”. The Deal Capture System is a regulatory requirement of the FSA that allows the CCI to make a formal record of the details of all deals brokered by the bank including the correspondence between the bank and the client whilst the deal was negotiated. This system is designed to be live so that the bank has a real time view on deals progressing at any one time. Aladin is a model building tool that calculates the risk of a deal based on variables input into the system. Once the user has collected the relevant data, Aladin gives an indication of the risk levels CCI exposes themselves to with each investment. In addition, the organisation has a central information systems department that services the organisations hardware, software and users. Each year the IS department conducts an audit of the data processing activities of the staff.
3. Internal audit During a recent internal audit, it was noted that the bank had a high dependency on the use of spreadsheets and that some spreadsheets are used for mission critical decision-making. The audit revealed that CCI has in excess of 50,000 operational spreadsheets across the organisation which range from trivial expenses claims through to complex financial spreadsheet models. The auditors asked the risk modellers why they rarely used the data capture system and the Aladin model builder. The users complained that these systems are slow and inflexible. In particular the Aladin model builder is too restrictive, it lacks the ability to define the model in great detail and requires extensive re-configuration to be kept up to date with changing commercial conditions. This has led to the pervasive use of spreadsheet software as the primary means of calculating risk levels, pricing levels and negotiations. Further investigations by the auditors revealed spreadsheets are used in almost every underwriting deal CCI makes. Frequently, the corporate systems are engaged after the deal has been negotiated and agreed on a spreadsheet. The users complain that they would not be able to do their jobs competitively without using spreadsheets as their primary tool for brokering deals. The auditors examined a small sample of spreadsheets used day to day by the employees. The sample contained various types of spreadsheets including: Simple administration duties such as expenses, Data stores for holding client contact information, Decision support spreadsheets used by heads of departments for resource planning and financial modelling spreadsheets used by actuaries for assessing risk and pricing deals. The auditors found no evidence that any of the spreadsheets had been developed: using a methodology; undergone testing; been formally documented. When the auditors asked the heads of departments how spreadsheet model integrity is ensured at a department level, most cited the CCI End User Computing policy signed by all staff. The End User Computing policy was introduced to ensure that CCI complies with the U.S. Sarbanes Oxley Act (2007). The current EUC policy simply tracks where the EUC artefacts (such as spreadsheets and databases) exist on the company network and requires the heads of department and the author of the work to sign a document declaring that the information held in the EUC artefact is accurate. The EUC policy makes heads of departments and authors accountable for the accuracy of the data held in the spreadsheets. When asked about the effectiveness of the EUC policy, heads of departments explained that since they have limited expertise in spreadsheets and databases, it is impossible to objectively determine if the information presented is accurate. They therefore trust that the actuaries work is accurate and sign the document in good faith. The auditors passed on their observations to the senior management team who in turn have requested a presentation outlining the risks to CCI and a pragmatic approach to managing the risks to which the bank is exposed. 4. The task You are to produce a 15 minute video presentation covering the following two points: <![if !supportLists]>1. <![endif]>Firstly (50%), you must outline the risks associated with spreadsheet use and relate this to CCI’s spreadsheet activities and practices that are evident in the case study. Your video presentation should also highlight the specific risks CCI faces and comment on any poor practice evident. Make use of citations to the literature and examples in your presentation. <![if !supportLists]>2. <![endif]>Secondly (50%), you must recommend a new approach to managing CCI’s spreadsheets risk. You are free to adopt any approach you see fit with the exception of removing spreadsheet use from CCI completely.Your approach should take into account the fact that CCI has some 50,000 operational spreadsheets. Video Presentation Rules <![if !supportLists]>1. <![endif]>Everyone in the group must pull their weight and contribute to the task, those that do not contribute will not be carried by other members. Please report all instances of non-engagement to Dr Thorne <![if !supportLists]>2. <![endif]>The first slide other than the title should list who is in the group and what their role was in researching, writing and presenting the video <![if !supportLists]>3. <![endif]>You are free to use any method to generate the video, you may want to cut together sections of people talking or perhaps provide narration over some slides. The choice is yours <![if !supportLists]>4. <![endif]>Groups will be set in seminars, be sure to attend these. At a later date, a list of group members will be published on Moodle.No changes unless authorised by Dr Thorne <![if !supportLists]>5. <![endif]>The presentation is 2000 words of effort not literal words.
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Word count (or equivalent): |
2000 |
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This a reflection of the effort required for the assessment. Word counts will normally include any text, tables, calculations, figures, subtitles and citations. Reference lists and contents of appendices are excluded from the word count. Contents of appendices are not usually considered when determining your final assessment grade. |
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Marking/Assessment Criteria |
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END USER COMPUTING RISK MANAGEMENT
Executive Summary
The "End Users of Computing" have accessed the risk factors and created a controlling opportunity by analysing the risks of the banking sectors "Cymru Capital Investments (CCI)". The aim of this project report is to determine the risk factors of using spreadsheets and developed a culture of decision-making opportunities. In this regard, the multiple kinds of approaches have been discussed here related to EUC policy, risk enhanced in CCI, Internal Audit systems and the usage of information systems in an effective manner. Based on the case scenario, valuable information has also been provided based on the report topic. After that, an overall summary has also been provided.
Introduction
- The "Cymru Capital Investments (CCI)" has been considered as a mid-sized range of banking sectors
- It has developed the culture of investment banking ratios throughout Europe and USA effectively
- The banking sectors have conducted the regulation systems by taking the help of the "Financial Services of Authority (FSA)"
Analysis:
The presentation has been treated as baking sectors that have developed the culture of the investment banking ratios at the time of working with the organisations. The "Breakage firms" have also operated in these industrial sectors and developed a culture of managing opportunities by identifying the risks and opportunities in an effective manner. After that, the chances of effective risk factors have been effectively identified and the rate of development by using the spreadsheets strictures the chances of operational cultures have regenerated effectively. The banks have also increased the rate of profit margin rates by generating values and recording profits of around £2.9 Billion.
Background
- "Cymru Capital Investments (CCI)" has developed a culture of employment opportunities around recruiting nearly 20,000 individuals (Coursehero.com, 2022).
- The respective organisations have increased the rate of financial opportunities by developing a culture of capital markets
- The chances of shares rates and the development of investment opportunities have been effectively improved by the improvements in financial stability
Analysis:
The respective industrial sectors have been underwriters of the loan opportunities and sharing the visions statements by providing the effective details of analysing the segmentations. In addition, the banking sector has also increased the rate of engagement rates and improved the culture of investment opportunities by attracting a wider range of clients. The chances of governments of the capitalist market have been developed the cultural attributes of the investment ratios by providing the best services among the customers.
Risks associated with spreadsheet use of CCI
- There are unskilled users and usage of insufficient guidelines for spreadsheet participation has been considered the main risks opportunity (Mkamanga and Thorne, 2021)
- The recycling of data and errors in spreadsheets have decreased the rate of security systems
- The data backup has also been incresaed the rate of disruptions in the CCI
Analysis:
The CCI has been facing a lot of issues with the timing of examining the spreadsheets that have not been considered as beneficial side for economic development. In addition, at the timing of the recycling of information, chances of data losses, errors in spreadsheets and developments of continuous and training appraisals have also been increased the rate of difficulties at the timing of using spreadsheets of conducting the CCI activities. Therefore, the rates of chronological records and interactions have also been diminished by the constant development activities of standardisation of the selling process and the ultimate rates of business determinations can be effectively reduced.
The use of Information Systems at CCI
- The risk factors related to poor vision, controlling change, poor documentation and lack of audit trail have been treated as spreadsheet errors (Rajković et al. 2020)
- The inappropriate management systems and security systems have been increased the rate of disruptions
- The "End Users of Computing (EUC)" have made spreadsheets and developed the culture of inventories systems
Analysis:
The use of the information system related to "End Users Computing (EUC)" have made establishments and balanced the business infrastructures module by controlling the outsides opportunity by increased the rate of inventories system. In this context, "Microsoft Excel" has also been treated as a common file type that has improved the rate of cultures by identifying the issues regarding potential and security control problems.
The use of Information Systems at CCI for underwriting (Contd)
- The implementation of technological advancements related to AI has increased the rate of selling infrastructures (Kroeger, 2020)
- The preparation of BIM-driven techniques has increased the rate of practising cultures through the enhancements of the basic applications
- "Artificial Intelligence (AI)" have been created assessments and unstructured the qualified data taking the help of statistical information
Analysis:
The Insurance underwriting transformations have developed a culture of technological advancements related to AI and the CCI have been created a wider range of changes in the financial and operational infrastructure by providing deployments taking the help of the underwriting experts. In addition, the adaptations of AI techniques have also created a financial and operational bottleneck by making associated with manual underwriting. The chances of commercial insurance opportunities have deployed the underwriting statements onwards. The rate of demand forecasting and developments of profitability has increased the rate of risk opportunities and created parameters by making commercial insurance opportunities.
Evaluate the role of EUC in modern organisations
- The adaptation of "Calibration of apparatus" has diminished the rate of errors and created an original measurement by rectifying the necessary things (Umney,2018)
- The "Control Determinations" have created experiments by using the standard substance and improved the rate of experimental conditions
- The experimental conditions have developed the culture of the designing process by reducing the rate of errors
Analysis:
The "Automated Spreadsheets" have been making insights and increased the rate of technological advancements and increased the rate of automation rates by preventing the tasks and creating effective results by oragnised, gaining and calculating reliable insights. The chances of evolving trends and developments of human error prevention by competing with repetitive task rates have also evolved effectively. As a result, the risks factors have also been analysed and the rate of sharing thoughts
Risks associated with EUC for mitigating the issues of spreadsheet developments
- The EUC has been dealing with different kinds of issues related to excessive ranges of operational costing considered one of them (Johnson, 2018)
- The rate of increased calculation errors in spreadsheets has been also treated as the other issues that have been sealed with the EUC tools
- The inappropriate time management and the lack of security have been treated as another risk factor that has been enhanced for the development of spreadsheet controls.
Analysis:
The effective tools of EUC have faced the differentiation of issues related to excessive ranges of cost structures, and errors of calculations have created a negative effect on the development of spreadsheets. In this regard, the poor range of changing control and inappropriate vision statements have been increased the rate of risk opportunity. The CCI have also not been getting successful in the development of regulating authority and making negative effects on the market share rates. The multiple kinds of risk opportunities related to "Financial risk, loss of stock values, the vulnerability of fraud and increased rate of compliance and auditing" have changed the cultures of controlling opportunity and the developments of IT controls have not been getting successful.
Role of human Factors play in spreadsheet development
- There has been an overview of the five ranges of human factors related to emotional, physical, cultural, social and cognitive have developed the culture of consumers' experience process (Harst et al. 2019)
- The rates of ultimate ranges of productivity and enhancements of comfort and safety circles have been specified by making accurate determinations
- Identification of risk attributes and making effective decision-making approaches have solved the issues regarding spreadsheets and simplified the development cycle activities (Barricelli et al. 2019)
Analysis:
Human factors have created a negative effect on the development of spreadsheets and making strategic decisions by generating the appropriate ideas in an effective manner. The developments of spectrum philology have also created a positive effect on the improvements of industrial processing by increased the rate of commercial insurance and creating appropriate decision-making approaches. Thus, the ultimate ranges of potential consequences and the chances of effective disciplinary action rates have been sustainably developed by making a wider range of potential impacts.
Methods applied to spreadsheets to reduce errors
- The use of effective methods related to the "Calibration of apparatus" has created an organisation by developing the cultures of effective functional activities
- The chance of ultimate determinations has been fulfilled by the uncovered unusual results effectively (Kocielnik et al. 2019)
- The ultimate rate of data validations and chances of effective developments have been sustainably improved by the constantly incresaed rate of ideas generations (Wrapcymru.org.uk, 2022)
Analysis:
The chances of errors have been effectively reduced by constantly generating ideas and the chances of collecting misinformation rates have also been reduced. In this regard, the usage of "Calibration of apparatus" has been considered a process that has developed the cultures of instrumental results within acceptable ranges. The chances of inaccurate measurement have created an effective instrumental design that minimised the chances of errors and created fundamental aspects by improving the rates of standardisation modules effectively. The chances of analytics and rates and developments of interest rates have ensured the rates of equipment opportunity by reducing the chances of control and uncertainties in an effective manner.
Formulate suitable management strategies
- "End User Computing (EUC)" the domain of technology and information has dealt with the devices and increased the rate of job opportunities (Aswidani and Yetty, 202)
- The above-depicted strategy has created a segmentation of the four kinds of strategic aspects related to the "Use case, the fitness of use, policy and governance and devices"
- The chances of providing consistency and rate of risk opportunities have been sustainably diminished (Wrapcymru.org.uk, 2022)
Analysis:
Taking the help of the "End User Computing (EUC)" have identified the EUC models and developed the culture of the business organisations and determined the rate of risk opportunities by creating an enhancement of the eco-friendly environments. In addition, the EUC models have also minimised the risk factors and provided consistency across the EUC models and established the risks by analysing the errors and creating an eco-friendly environment and developing a culture of working flexibility.
Role of legal, management and technological policies
- The "EUC Policy" has included the elements of multiple kinds of strategic aspects related to process, technology, governance, and people respectively (Sutton-Parker, 2022)
- "Virtual desktop infrastructure (VDI)" has created improvements in the central server systems
- The desktop has been accessed by the user's applications allowing the easy process of CCI (Wrapcymru.org.uk, 2022)
Analysis:
The "EUC Policy" has played a vital role in the development of differentiations of attributes related to technology, management and legal policies respectively. In this regard, the chances of centralised platforms and developments of security and safety have managed the software licensing by effectively managing the diversity.
Internal audit
- CCI have excesses the 50,000 by stranded the operational spreadsheets across the trivial expenses and creating financial spreadsheets models (Coursehero.com, 2022)
- At the timing of data capturing the "Aladin model" and "Data capture system" have been used by improving the rate of configurations and changing the commercial conditions
- The CCI has created an underwriting dealing activity by developing a culture of engagement rates (Coursehero.com, 2022)
Analysis:
The proportion of "End User Policy" has created compliance with the "U.S. Sarbanes Oxley Act, 2007" and improved the culture of the spreadsheet opportunities. The EUC Policy have also been created by heads of departments and increased the rate of data authenticity and fulfilled the ultimate rates of objectives.
Internal audit (Contd.)
- The FSI has been allowed support by developing the culture of business opportunities and creating an effective agreement by making corresponding statements (Coursehero.com, 2022)
- The banks have also analysed the risks factors and increased the rate of data processing and staff developments activities
- The tools related to "Aladin" have developed the culture of data-capturing systems by analysing the risk factors (Coursehero.com, 2022)
Analysis:
The "Aladin Model" has allowed the recording process and identified the risk factors. The rate of correspondence between the client and banks has created an effective time management system by making negotiations and collecting reliable data.
Recommend a new approach to manage CCI’s spreadsheets risk
- "Risk Avoidance" has diminished the rate of spreadsheets risks (Wrapcymru.org.uk, 2022)
- The chances of increased rates of mistaken rate can also be diminished
- The rate of communication infrastructures and developments of risk-monitored rates can be also assessed (Coursehero.com, 2022).
Analysis:
The CCI can be getting successful to identify the risk and the chances of risk opportunity rates can also be effectively diminished. Therefore, the keeping recording transactions have to get the easiest concept to share visions and increase the rate of safety and security services.
Conclusion
- The presentations have analysed the topic of "End Users of Risk Management"
- The analysis of risk factors has also been elaborated
- The determinants of "EUC Policy" have also been effectively analysed
Analysis:
The presentations have provided clear concepts regarding the risk factors of "End Users computing" and analysed the case study regarding CCI. The risk factors and mitigations through EUC policy have also been briefly elaborated on.
References
Journals
Aswidani, A. and Yetty, Y., 2022. Analisis Faktor-Faktor Pemanfaatan Teknologi Informasi dan Dampaknya Terhadap Keahlian End User Computing (Euc). COMSERVA: Jurnal Penelitian dan Pengabdian Masyarakat, 1(11), pp.1054-1056. https://doi.org/10.36418/comserva.v1i11.394
Barricelli, B.R., Cassano, F., Fogli, D. and Piccinno, A., 2019. End-user development, end-user programming and end-user software engineering: A systematic mapping study. Journal of Systems and Software, 149, pp.101-137. https://doi.org/10.1016/j.jss.2018.11.041
Harst, L., Lantzsch, H. and Scheibe, M., 2019. Theories predicting end-user acceptance of telemedicine use: systematic review. Journal of medical Internet research, 21(5), p.e13117. https://doi.org/10.3389/fmicb.2019.00739
Johnson, C.W., 2018, February. The increasing risks of risk assessment: On the rise of artificial intelligence and non-determinism in safety-critical systems. In the 26th Safety-Critical Systems Symposium (p. 15). Safety-Critical Systems Club York, UK.. https://www.dcs.gla.ac.uk/~johnson/papers/SCSC_18.pdf
Kocielnik, R., Amershi, S. and Bennett, P.N., 2019, May. Will you accept an imperfect ai? exploring designs for adjusting end-user expectations of ai systems. In Proceedings of the 2019 CHI Conference on Human Factors in Computing Systems (pp. 1-14). https://doi.org/10.1145/3290605.3300641
Kroeger, J., Managing the risks of using end user computing solutions. RESEARCH IN IT-AUDITING AM, p.249. https://assets.vu.nl/d8b6f1f5-816c-005b-1dc1-e363dd7ce9a5/cea73774-f4ec-4241-b6e4-0eb99e550b0d/Research%20in%20IT-Auditing%202019.pdf#page=251
Mkamanga, K.M. and Thorne, S., 2021. Exploring Spreadsheet Use and Practices in a Technologically Constrained Setting. arXiv preprint arXiv:2201.07696. https://doi.org/10.48550/arXiv.2201.07696
Rajković, T., Milutinović, L.Đ. and Lečić-Cvetković, D., 2020. Spreadsheet model for determining adequate performance indicators of production management. Management: Journal of Sustainable Business and Management Solutions in Emerging Economies, 25(3), pp.13-22. https://doi.org/10.7595/management.fon.2020.0011
Sutton-Parker, J., 2020. Determining end user computing device Scope 2 GHG emissions with accurate use phase energy consumption measurement. Procedia Computer Science, 175, pp.484-491. https://doi.org/10.1016/j.procs.2020.07.069
Umney, H., 2018. Managing Corporate Spreadsheet Risks. Risk Management, 65(10), pp.14-16. https://www.proquest.com/openview/0790b7c046f04a11e2031ac7f35e8ea6/1?pq-origsite=gscholar&cbl=47271
Websites
Coursehero.com (2022). Cymru_Capital_investments.doc - Cymru Capital investments Contents Introduction. Available from: https://www.coursehero.com/file/24402818/Cymru-Capital-investmentsdoc/ Accessed on 21/11/2022
Wrapcymru.org.uk (2022). Circular Economy Fund. Available from: https://wrapcymru.org.uk/taking-action/grants/ Accessed on 21/11/2022