Transformation Solutions

Finance & Risk Architecture Transformation Across Asia for a Global Investment Bank

Challenge

A global investment bank embarked on a multi-year initiative to modernise and harmonise its finance and risk architecture across Asia, addressing long-standing inefficiencies and fragmented system dependencies in its trading businesses.

The existing middle-office setup suffered from:

• Multiple legacy trade capture systems across markets (Japan, Korea, Hong Kong, Taiwan).

• Delayed end-of-day close processes due to reconciliation gaps between risk and finance.

• Limited transparency in FX risk exposures and Value-at-Risk (VaR) calculations.

• Heavy manual intervention in trade booking and PL attribution processes.

• Inconsistent control frameworks and non-aligned regulatory reporting standards across jurisdictions.

The objective was to establish a unified regional architecture that improved control integrity, enabled real-time transparency, and reduced operational risk — forming the backbone for future digital finance transformation.

The bank required a Transformation Strategy Lead Consultant to design, govern, and orchestrate this regional rollout while ensuring business continuity and local regulatory compliance.

Solution

Harmonic Strategy developed and led a Finance and Risk Transformation Framework focused on unifying trade, risk, and finance operations through an integrated technology stack and structured governance model.

1. Strategic Transformation Blueprint

• Defined the target-state architecture integrating front-office trade capture, middle-office risk, and finance subledger layers.

• Mapped a multi-phase deployment roadmap starting with Japan as the pilot region, then expanding to Korea, Hong Kong, Taiwan, and other Asian markets.

• Created a Finance–Risk Data Convergence Model ensuring trade-to-accounting integrity from capture to general ledger.

• Established a cross-jurisdiction transformation PMO to coordinate regional rollout sequencing, regulatory dependencies, and system integration priorities.

2. Finance Subledger Implementation

• Deployed a next-generation subledger system (Genesis) to bridge the gap between trading and accounting layers.

• Standardised trade-to-GL data mappings, enabling automated journal generation and accurate financial attribution.

• Reduced reconciliation errors and improved transparency into daily PL and balance sheet movements.

• Introduced an exception-based control framework to automate error detection and improve financial accuracy.

3. Risk Engine Integration

• Rolled out the FX Risk Engine (FXRE) — centralising exposure management, VaR computation, and scenario stress testing.

• Enabled real-time monitoring of trading desk positions across currencies and entities.

• Harmonised risk analytics across regional desks, integrating VaR, delta, and sensitivity data directly with finance reporting.

• Delivered a risk-to-finance attribution framework, improving capital and liquidity reporting accuracy.

4. Trade Capture System Deployment

• Implemented the FX Trade Blotter (FXBlotter) to capture and validate real-time trade activity.

• Integrated trade booking directly with pricing, settlement, and PL validation workflows.

• Enhanced trader productivity and control through automated trade reconciliation and audit traceability.

• Linked the Blotter with risk and subledger layers, achieving full front-to-back data lineage.

5. Governance, Testing, and Regulatory Alignment

• Established a phased rollout governance framework to oversee deployments by market, ensuring business readiness and change management alignment.

• Implemented cross-functional testing frameworks involving trading, operations, finance, and risk teams.

• Ensured regulatory compliance across Japan FSA, HKMA, and Korean FSC jurisdictions, aligning reporting and capital transparency requirements.

• Set up a central command structure for decision-making escalation, issue resolution, and regional deployment approvals.

6. Business Adoption and Change Enablement

• Developed a comprehensive change management plan including user training, simulation workshops, and control walkthroughs.

• Created clear RACI matrices defining ownership across technology, operations, and finance functions.

• Introduced knowledge-sharing templates and transition guides to ensure sustainable operations post-deployment.

Key Deliverables

• Regional Finance–Risk Target Operating Model (TOM)

• Genesis Subledger Deployment Blueprint

• FX Risk Engine and Trade Blotter Integration Plan

• Governance Framework and Rollout Playbook

• Regulatory Alignment Pack (Japan, HK, Korea, Taiwan)

• Training, Change, and BAU Transition Materials

Client Benefits

• Achieved a harmonised finance and risk infrastructure across all key Asian markets.

• Improved risk transparency and PL attribution accuracy through integrated systems and data lineage.

• Reduced end-of-day close cycles by 35%, freeing up finance capacity for analytics and reporting.

• Enhanced regulatory reporting confidence through automated control validation and reconciliation.

• Strengthened governance, reducing operational risk and manual control failures.

• Positioned the firm for future cloud migration and digital finance transformation initiatives.