Implementing OFSAA

Application Configuration &

Design

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The following is intended to outline our general

product direction. It is intended for information
purposes only, and may not be incorporated into any
contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decisions.
The development, release, and timing of any
features or functionality described for Oracles
products remains at the sole discretion of Oracle.
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Agenda
Understanding the Requirements use case

Identifying configuration areas

Metadata Design

Metadata Configuration

Question and Answers

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Understanding the Business Requirements

Understand the requirement (Example 1)
The exposure at default for loans and mortgages is equivalent to outstanding
amount, accrued interest, undrawn amount. Provision amount is to be excluded from
the same. The undrawn amount has to be multiplied with credit conversion factor.
The exposure at default for OTC derivatives is based on the following formula
(MTM amount + notional amount* add on percent)

Reiterate the business understanding using a formula

For OTC derivative EAD = (MTM Amount + (Notional Amount * Add-On
Percent))
For Other products EAD = (Outstanding Principal Amount + Accrued Interest
Specific Provision + (Undrawn Amount * CCF))

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Understanding the business requirement.Contd.

Example-2: Allocation of

communication expense booked in Head office to

different business units like Retail banking, IT, HR, Treasury and Corporate
banking based on headcount(HC) . Headcount data to be provided as separate
interface to OFSAA as per prescribed format.

Reiterate the business understanding using a formula:

Retail Banking: [(Total Communication Expense) / ( Retail BNK HC/ Total HC)]
IT

: [ (Total Communication Expense) / ( IT HC/ Total HC)]

HR

: [(Total Communication Expense) / ( HR HC/ Total HC)]

Treasury

: [(Total Communication Expense) / ( Treasury HC/ Total HC)]

Corporate BNK: [(Total Communication Expense) / ( Corp BNK HC/ Total HC)]

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Solution Development Methodology

Analytical Solution Development Methodology
#

Phase

Typical Activities

Solution
Conceptualization

a) Identify Strategic Business Questions that need to be answered by the solution

b) Identify Analytical Domains - e.g. for a cards analytics domains like Delinquency
Analysis, Concentration Analysis etc
c) Identify typical reports/dashboards sought by Business users in each Analytical
domain

Functional Design

a) Breakup each analytical domain into Business Dimensions, Measures and

Attributes involved
b) Determine attributes that are (i)typically available from input systems in a financial
institution (ii) need to be captured through a workflow
c) Determine business rules needed to compute the measures and statistical models
to be used for estimations

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Solution Dev. Methodology.. Contd

Analytical Solution Development Methodology
#

Phase

Data Model
Design &
Review

Typical Activities
a) Identify data elements (i) that are to be sourced for base measures (ii) that are to be
sourced for deriving computed measures/input parameters needed for statistical models
b) Gap Analysis with existing data model
c) Add new entities and attributes needed to data model with ERWIN
d) Review of Data Model changes with Product Management teams

Metadata
Design &
Review

a) Design specifications for (Complete Metadata Sheet)

1)Reports==>Cubes/Marts==>Runs/Processes/Rules/Forms/Workflows/Models==>Maps/Da
tasets/Dimensions/Hierarchies/Business processors /Measures/Computed Measures
2) Load/T2T/DQ checks
3) Operations==>Batches
b) Make sure existing base metadata is re-used for the new solution
c) Review of Metadata specifications with Product Management teams

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Solution Dev. Methodology.. Contd

Analytical Solution Development Methodology
#
5

Phase
Solution
Configuration

Typical Activities
a)
b)
c)
d)

Solution Testing

Solution Release

Upload Data Model

Load data into staging layer and perform reconciliation between instrument data
and GL data if required.
Setting application preferences.
Perform solution configuration ==> All definitions from the metadata sheet
configured using OFSAA Frameworks . Business rules(ALM,FTP, PFT) needs to
be configured based on application to be implemented.

a)

Preparation of Test Plan and Test cases with real-life scenarios

b)

Testing of Configurations as per Test plan

a) Documentation - Solution Installation Manual, User Manual, Training Guides, Help

Files
b) Formal QA of the Solution
c) Formal Release certification

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Requirements Analysis Phase-Objectives

This phase deals with the gathering of information on the banks business
requirements for the OFSAA applications to be implemented
These business requirements are collated either through questionnaires and
interviews/meetings or through previously prepared Business Requirements
Documents
The output of this process forms the basis for the implementation team to
configure the OFSAA applications as per scope and comprises:
Business Requirement Study
Gap Analysis
Data Requirement Study
The objective of the Gap Analysis is to identify the gap based on the requirement
and the out of the box features of the solutions.

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Configuration Phase - Objectives

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This phase focus on configuration of OFSAA product as per banks business

requirements. The outputs from the previous phase will form the basis for the
activities in this phase.
The activities performed in this phase are:
Business Solution Harmonization
Data Model Harmonization
Information process Design
Batch Design
Meta data Configuration

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Testing Phase
Data Certification Testing

Source Data Certification refers to the Data Load & Data Quality Checking at the entry point of
the ETL Module ON the files received from Data Sources
Objective of Source Data Certification is to ensure a Quality set of Data from Sources prior to any
Functionality Testing of the Solution

Types of DQ Checks
Standard Checks

Quality Checks

Header Trailer Validity

Checks
Loading Threshold Checks

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Business Quality Checks

Predefined Data Quality
checks
Value Code Mapping Checks
/ List of Values (LOV)
Checks
Duplicate Checks

Referential Integrity Checks

Null Value Checks
Zero Checks
Range Checks
Distinct Value Checks
(Spread across a given
expected LOV)

Testing Phase .contd..

Pre-fulfillment Testing

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User Acceptance Testing

Complete Internal Testing prior to start of UAT

No User Involvement

Will use actual source extracts

Will also include some amount of

performance Validations
Prepare Pre-Fulfillment Test Plan with Test
Cases for different logical days
This is full E2E (end to end) Testing of the
final delivery to the customer without
Business User Involvement
Will use actual source data of different logical
periods Use Certified Source Data from the
Source Data Certification Testing which has
been signed off

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The Actual Acceptance Testing by the end

user
User Training of OFSAA applications and
testing process MUST precede this
User Acceptance Plan should be prepared by
USERS in advance and Acceptance Criteria
should be agreed & documented
Finalize a schedule for the UAT
A Support team to be in place, and also
Global Support will be informed of the start

Analytical Processing
APPLICATION-SPECIFIC
PROCESSING AREA

STAGING AREA
Step 1: Identify the new data
elements
Identify the tables and columns which needs
to be modified
Use ERWIN to update the data model
Upload the data model into

Step 2: Modify the data requirement

steps

Step 5: Create Metadata

Technical Metadata
Business Metadata
Rule Change
Batch Modification

Update the data model dictionary

Step 6: Execute the batch to

process data

Step 3 : Run Data Quality checks

Run is executed to process data

Rules are executed one by one based on the
precedence

Define DQ rules for the additional data

elements
Create the same using the DQ Framework

Step 4: Move Data via T2T to

Processing & Results
Use data integrator to modify the T2T
definition to add the data elements

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RESULTS AREA

Step 7: Reporting Impact

Ensure data movement from processing
to results area
Update the OBIEE reports based on the
requirement of the bank

Analytical Processing
Metadata

T2T

T2T

Rule

Engine

Etc

Step 4

Step5

Step6

Step7

DQ
Step 2

Step3

T2T

Frameworks

Step 1

Framework
Instructions

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Step8

Process
Steps

Run framework

Processing

Metadata Configuration
Define data model change entities, attributes, length, type
Define table to table mapping source, destination, transformation
Define business metadata - measures, hierarchies, dataset and business processor
Define data transformations
Define rule source, target, mapping
Define process rules, predecessors
Define run process
Define reporting layer changes

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Decomposing the Business Requirements into

OFSAA Metadata Sample Case
#

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Calculation Step

Component

Exposure data load from staging to the central fact tables

Create join condition between the required dimension and the central fact
table

Basel II Product Type Classification

3a.

Define the tree structures based on Bank Products and Basel II Products

Hierarchy

3b.

Build the mapping between the Bank Products and Basel II Product Types

Type II Rule
(Reclassification Rule)

Define Business Objects

4a.

Define EAD

Measure

4b.

Define Marked to Market Amount

Measure

4c.

Define Add-on

Measure

4d.

Define Notional Principal Amount

Measure

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Type I Rule (T2T)

Data Set

Decomposing the Business Requirements into

OFSAA Metadata Sample Case
Sl.No

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Calculation Step

Component

Define Transformation Logic

5a

Define expression for the EAD calculation for OTC Derivative

Products

Business Processor

5b

Define expression for the EAD calculation for non OTC Products

Business Processor

Define the EAD calculation

6a

Define the logic for EAD calculation for OTC and non-OTC products

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Rule

Q&A

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