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Financial Services

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High Integrity Offer

This presentation focuses on the Altran services that create high levels of integrity in risk assessment, systems reliability, software development and operations control.

These services have been transferred from Altran’s Aerospace and Defence division where high integrity risk assessment, system reliability and software development techniques are required for mission critical services.

High integrity Risk identifies more critical risks that conventional techniques, High Integrity IT delivers ultra low defect system and application performance and High Integrity Governance implements controls with strong forensics in line with Basel II and Solvency II.

The services are delivered by teams of finance, risk, IT, software and systems engineering experts. The services are calibrated to the unique challenges of the world’s largest Financial Services companies.

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Client Needs < Our Offer

Preserve Capital < High Integrity Governance Systems

Control Risk < High Integrity Risk Management

Improve Resilience < High Integrity Systems & Software

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Global Reach and Deep Understanding of Financial Services• 25 years in Financial Services• 126 clients in Financial Services, 2,000 consultants• Strategic partners with 2 of the top 5 banks• Specialist domain knowledge and experience in operational risks• Known for delivering outstanding value, beyond that of niche or global competitors

Centre of Excellence in High Integrity Risk & Systems• 26 years experience in risk management and systems engineering• Expert in the design of applications with demanding performance, resilience, reliability and

security • Expert in leading edge processes and techniques to control risk and quality with strong

governance • 300 systems engineers, strong pedigrees in risky, complex and innovative systems

Capabilities in Financial Services

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Microchip to store cash

Retail Banking Technology

For Example…

High IntegrityTechnology

Control system to enable ‘stealth’

Joint Strike Fighter, F-35

Identify Controls and Tail Risk

Investment Bank

Technology

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Distinctive Capabilities > High Integrity Risk Management

Financial Risk Management• Product control and financial

reporting expertise e.g. VAR, Risk repository etc.

• Covers both vanilla and complex products

• FAST IT expertise for front office• Regulatory expertise in Basel, SOX,

Solvency II

STORM Method

Systems Integration• Implementation of risk systems into

client organisations• Benefits from Altran’s understanding of

real time systems, risk and existing banking systems

Risk Management• Systematic techniques for

operational risk management, STORM

• Method ported from safety engineering, enables a complete assessment of risk

• Critical and systemic risks , normally hidden are identified.

• Real time ‘Market Risk’ computing system for better capital management

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Distinctive Capabilities > High Integrity Systems & Software

Systems Engineering methods for Requirements & Business Analysis

• Method addresses root causes of project failure by getting the requirements and managing the evolution

• System engineering skill set, targets elimination of defects, predictive outcomes measured from processSystems methods for

Development and Test • End to end construction approach,

tailored to situation, but deploys a range of system engineering techniques to deliver a robust system

• One of the best high integrity processes in the world, used by National Security Agency

Domain knowledge• Business issues and challenges• Real Time Trading Systems• Data warehousing and management• Front, middle and back office in

operations• Regulatory requirements

Low Level Defect Software

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Distinctive Capabilities > High Integrity Governance Systems & ExpertiseOperational Governance System

• Iimprove control and reduce risk in operations and projects

• Link Basel II losses to control plan and reconcile to accounting systems

• Sets up a control room with a full suite of governance services to manage controls and losses

• Delivered as a software service, tailored to client needs, experts drive the implementation

Product, Regulatory, Risk & IT Expertise • Business and project delivery experts

that have the trust of senior executives.• Domain expertise in IT and financial

products, key skill in front office• Product control experts able to re-

engineer processes and systems. Key skill in middle office

Increasing rigour

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Client Need > Control Risk, Improve Resilience, Preserve Capital < Our Offer

Preserve Capital < High Integrity Governance Systems and Expertise • Executive Situation and Control Rooms to consolidate control events and risk management • Finance & IT expertise to improve governance in complex financial environments such as product

control and trading• Programme & project management teams to solve business and delivery issues and effect

emergency recovery

Control Risk < High Integrity Risk Management • Operational risk management using techniques developed for safety critical systems • Market Risk consulting based on specialist local and global knowledge and experience • Systems integration of new risk control technology into banking systems

Improve Resilience < High Integrity Systems & Software• Systems engineering methods to raise systems reliability, resilience and performance• Specialist techniques for software development of mission critical banking systems• Specialist techniques for software testing of mission critical banking systems

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Distinctive Capabilities > How to buy our expertise Select a High Integrity Service

• Operational Risk Management (STORM)

• Market Risk performance • High Integrity Systems & Software

Business Analysis (REVEAL) Development & Test

• Governance (RTG)• Programme Management

Select Financial Service Expertise

• Operational Risk Management• Market Risk systems improvement • Product and Financial Control• Governance• Business case development• Programme and Project Delivery

Select a High Integrity Processes• Standards• Certification• Risk and audit• Change and configuration control• Quality control• Management of engineering services• Metrics and quality assurance

Select a High Integrity Capability• Six 9’s system engineering skill set• Formal method implementations • Error suppression and QRA • Highest level of security (ITSEC L6)• Integration of critical software into

COTS• Management of legacy and critical

system

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Delivery Model > Select an engagement model

Offsite Focus• SME engaged with data and information

offsite• Minimises impact on client resources• Steering Committee led

Subject Matter Expertise• SME engaged intimately within a

client organization• Business and technical focus• Altran MD and Chief Engineer

engagement

Executive Level• The client executive needs to be

engaged in intermediate findings and drawing conclusions

• Altran CEO and MD engagement

Client Led• Altran SME integrates into a client

led project. • Altran management take on a

supportive and resource role.

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Appendix – Further details on Services

HIGH INTEGRITY DEVELOPMENT AND TEST

HIGH INTEGRITY DEFECT ELIMINATION ( LEGACY )

HIGH INTEGRITY BUSINESS ANALYSIS

HIGH INTEGRITY RISK MANAGEMENT

HIGH INTEGRITY GOVERNANCE

HIGH INTEGRITY - CASE STUDY

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HIGH INTEGRITY RISK MANAGEMENTSTORM is structured techniques for operational risk management that

focuses on completeness, rigour and can give a quantitative assessment if necessary

An overview of what drives risk, enabling you to baseline your risk

• Quantified indication of what causes the greatest risk, allowing you to focus your effort where it is needed

• Specific risk-mitigating actions that will help you to lower your risk and reduce losses

• Independent assurance that you are adequately managing risk, supporting compliance to regulatory criteria

A unique method for managing operational risk

• Proven to reduce risk in safety industries such as aviation, energy and transport

• Applied in related fields such as defence and aerospace

• A way of supporting business decisions aimed at minimising loss for new or existing systems

• Tailored to the challenge in hand

and provides…

Click for detailsHigh Integrity Risk

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HIGH INTEGRITY BUSINESS ANALYSIS

REVEAL is an engineering method designed to attack the root causes of project failure by getting the requirements right at the start and managing the evolution throughout the project.

Reveal…• Identifies and involves all stakeholders• Facilitates and encourages innovation• Scalable from small to large and complex

systems• Identifies and promotes understanding of

issues early in life cycle• Manages life cycle risks and changes• Demonstrates adherence to legal and

standards requirements

Industries • Banking (secure financial applications, top

level business requirements)• Medical & Aerospace• Railway (Communication, Control systems,

renewal and enhancement projects)

Click for details High Integrity Software Development

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Correctness by Construction, 'C' by 'C', is an engineering philosophy that combines defect avoidance with rapid defect removal in such a way as to minimise waste and maximise value

Why is Correctness by Construction different?• The techniques uses methods such as HIPS, REVEAL,

Formal Computing, STORM and SPARK at the front end of the lifecycle

• The use of formality and rigour through-out the life-cycle minimizes defect and risks

• Evidence of compliance collected ‘as you go’. This aspect is in line with emerging objectives-based risk and safety standards such as Def Stan 00-56 Issue 4

Identified by the Software Engineering Institute (USA) as one of the three best high integrity software development processes in the world

HIGH INTEGRITY DEVELOPMENT & TEST

Click for details High Integrity Test

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Why is this approach different?• Recognises that maintaining legacy systems poses a

unique challenge.• Provides a focus on flexibility and choosing the most

appropriate tools for the job, not on a one-size-fits-all approach.

• Use of a rigorous and well-defined process through-out the life-cycle minimizes defects and risks.

• Focuses on verifying not only the change made but also that functionality out of scope of the change remains as before.

• Uses Safety engineering techniques to assess risk of changes being made and tailors verification accordingly.

HIGH INTEGRITY DEFECT ELIMINATION

An approach to maintaining legacy software systems based on a rigorous development process, a risk-based approach to verification and a focus on showing changes do not interfere with existing functionality.

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HIGH INTEGRITY GOVERNANCE

REAL TIME GOVERNANCE improves control and reduces risk of events and deliverables in all the key business areas and projects for financial services companies.

Benefits• Robust management improves compliance to

procedures and standards• Decision makers have real time control over

events • Service can be calibrated to the exact needs

of a client

RTG sets up a control room on your desktop, with a full suite of communications, instructions and event screens to manage your business and people. Executives and managers create controls, direct resources and expedite events at the click of a button. Creates the forensics for improvement in regulatory capital by tracking losses and actions.

Click for details High Integrity Governance

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HIGH INTEGRITY CASE STUDY

MONDEX - DESIGNED AND BUILT THE SECURITY SYSTEM/CERTIFICATION AUTHORITY for the world’s first cash card payment system.

Low level of fault fix 99.999% availabilityHigh system stabilityUltra low defect

softwareTamperproof

environment

Stringent security requirements – i.e. neither create nor destroy money

Commercial usability - high throughput and good usability

Click for details

Approach - Formal methods for mathematical robustness. Services – Architecture, High Level Design, Detailed Design,

Code, Verification & Validation. Challenges - hardware separation, encryption,

authentication, security critical functions, software modules and processes, cryptographic keys

Customer Challenge Outcomes

Approach, Services, Challenges

Mondex Case Study

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Contact Details

Ian ThomsonHead of Altran Financial Services

Shackleton House4 Battlebridge LaneLondon SE1 2HP

Office - 0203 1170752Mobile - 07723 323800Ian.Thomson@Altran.com