Client

Spreadsheets and other end-user computing (EUC) applications pose an enormous risk to insurance companies that rely heavily on them to perform their reporting and other functions. The combination of a lack of controls, inadequate training and human error with which EUCs are often managed has led to costly mistakes affecting insurers, banks and even governments.

Concerned about the vulnerability of their highly complex and often poorly documented spreadsheet models, a forward-thinking global reinsurance company asked us and our partner Apparity to develop a robust EUC management framework to meet VAIT and EUC policy compliance.

Challenge

An effective EUC management programme consists of four elements – governance, people, process and technology. The initial discovery phase highlighted the following challenges. 

Governance:

No EUC Policies: The lack of formal policies led to inconsistent data practices, increasing the risk of errors and non-compliance.

Inadequate Controls: Without risk-based controls in place, critical data remained vulnerable to unauthorised access, manipulation and potential losses.

People:

Missing Best Practices: The actuarial team lacked documented best practices, leading to unreliable and inefficient spreadsheet usage.

Process:

The absence of clear processes: This made it difficult to ensure adherence to VAIT (the German Supervisory Requirements for IT in Insurance Undertakings) regulations and internal EUC policies.

Technology:

Manual Dependency and Lack of Automation: The client required automated solutions for key processes identified in their operating model, further highlighting the need for technological advancements.

Approach

We followed a recognised approach to implementing the EUC programme.

Consultation

  • Together with the Apparity team we undertook an in depth review of of the clients current EUC landscape & specific requirements.

Consultation EUC Policy and Best Practice Guidelines

  • Established iterative feedback loops for all team members. 
  • Designed a training programme for all of the key stakeholders.

Pilot

  • Defined the success criteria.
  • Executed numerous test scripts against various use cases.

Implementation

  • We held a workshop with the key stakeholders to design the custom configuration development to meet the needs of the client. 
  • We provided training and rollout support for the team. 

Operational Procedures 

  • Once the new framework was implemented we established a steering committee and team to support and champion the new procedures.

Results

MBE Consulting and Apparity helped the client to build and operationalise a sustainable EUC programme which involved: 

  • 1,500 EUCs risk assessed and inventoried with controls.
  • 105 new, highly complex files were indentified that were not previously self-declared as EUCs.
  • 100 network locations monitored for new EUC files in real time.
  • 6,100 different versions of EUCs being actively tracked.

In addition to satisfying internal and external policy and regulation, MBE Consulting and Apparity helped implement an EUC programme that will reduce:

  • Errors in preparation of financial statement and management reporting.
  • Effort to remediate errors in EUCs.
  • Regulatory and compliance penalties.
  • Losses and reputational damage due to errors.

Testimonial

“Before working with MBE and Apparity we lacked EUC management, with models being fragmented and inefficient, leading to data inconsistencies and compliance concerns. Their team implemented a comprehensive programme that addressed our challenges head-on. We now have a robust EUC framework that fosters collaboration, ensures data security and allows our actuarial team to focus on strategic initiatives. We highly recommend their expertise to any company looking to improve their EUC management.”

Head of Actuarial