New

Learn smart - Learn online. Upto 88% off on courses for a limited time. View Courses

Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
loader
Add File

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Guaranteed Higher Grade!

Stuck on Your Question?

Get 24x7 live help from our Top Tutors. All subjects covered.

loader
250 words

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Students Who Viewed This Also Studied

6 Pages
Financial Management

 ANALYSIS. Discussion and understanding of CAPM and the issues associated with the theory, including the advantages and shortcomings of the theory, along with outlining the underlying assumptions ...

Type

Assignment

Subject

Finance

52 Pages
Price Yield And Volatility

FNCE3001 Introduction to Instruments & Markets S emester 1, 2021 Page 1 of 12 School of Economics, Finance and Property CASE STUDY S emester 1 2021 Introduc ...

Course

FNCE3001

Subject

Finance

University

Curtin University

Season

Spring

90 Pages
The Option Adjusted Spread

FNCE3001 Introduction to Instruments & Markets Semester 1, 2021 Page 1 of 17 School of Economics, Finance and Property CASE STUDY Semester 1 2021 Introduction to ...

Course

FNCE3001

Subject

Finance

University

Curtin University

Season

Spring

0 Page
Trial Balance Information

...

Course

acc202

Subject

Finance

University

Singapore University of Social Sciences

Season

Spring

CIS7014 End User Computing Risk Management

Question

Answered

Assessment Requirements

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. 

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. 

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.

The Task

You are to produce a 15 minute video presentation covering the following two points:

1.Firstly  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.

2.Secondly 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. 

CIS7014 End User Computing Risk Management

Answer in Detail

Solved by qualified expert

Get Access to This Answer

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

27 More Pages to Come in This Document. Get access to the complete answer.

MyAssignmenthelp.com functions as one-stop solutions of all types of assignment related queries. Expert writers associated with MAH deliver assignment help online in the fastest way possible. With assignment writing help, we have different teams of editors who provide assignment editing and proofreading assistance as well. For students who often wonder, who can do my assignment online or search the internet with the search term like write my assignment online, we provide one stop answer to all their assignment related issues. For our extensive range of services, students prefer to buy assignment from us at cheap rates.

More CIS7014 CIS7014 End User Computing Risk Management: Questions & Answers

Q

Financial Management

 ANALYSIS. Discussion and understanding of CAPM and the issues associated with the theory, including the advantages and shortcomings of the theory, along with outlining the underlying assumptions and application of the Security Market Line and the Capital Market Line (illustrated by graphs). & ...

View Answer
Q
icon

We aren't endorsed by this University

Price Yield And Volatility

FNCE3001 Introduction to Instruments & Markets S emester 1, 2021 Page 1 of 12 School of Economics, Finance and Property CASE STUDY S emester 1 2021 Introduction to Financial Instruments and Markets This paper is for OUA students This is an OPEN BOOK a ...

View Answer
Q
icon

We aren't endorsed by this University

The Option Adjusted Spread

FNCE3001 Introduction to Instruments & Markets Semester 1, 2021 Page 1 of 17 School of Economics, Finance and Property CASE STUDY Semester 1 2021 Introduction to Financial Instruments and Markets This paper is for OUA students This is an OPEN BOOK assessment ...

View Answer
Q
icon

We aren't endorsed by this University

Trial Balance Information

...

View Answer

Content Removal Request

If you are the original writer of this content and no longer wish to have your work published on Myassignmenthelp.com then please raise the content removal request.

Choose Our Best Expert to Help You

icon

5% Cashback

On APP - grab it while it lasts!

Download app now (or) Scan the QR code

*Offer eligible for first 3 orders ordered through app!

screener
ribbon
callback request mobile
Have any Query?