Transformation Solutions

Governance Framework Transformation for Equity Derivatives Digitisation

Challenge

A European investment bank sought to digitise its Equity Derivatives business across Asia–Pacific, modernising legacy front-office platforms and introducing enhanced risk and control oversight. The transformation covered the rollout of CB Trader and Imagine systems, both designed to improve trade execution, valuation accuracy, and operational efficiency.

The program faced several structural challenges:

• Inconsistent governance models across markets leading to fragmented control environments.

• Lack of standardised approval pathways for new products and platform releases.

• Siloed oversight between trading, risk, and operations teams, creating delays and risk blind spots.

• Absence of a front-to-back integration framework, reducing visibility and accountability across critical processes.

• Limited risk escalation discipline during digitisation phases, increasing exposure during system cutovers.

The bank required a Transformation Strategy Lead Consultant to design and implement a business control governance framework, ensuring operational integrity and consistent oversight during its multi-market platform rollout.

Solution

Harmonic Strategy was engaged to architect and lead a Business Control Governance Transformation across APAC, creating the structure, standards, and execution mechanisms needed to support digitisation at scale.

1. Governance Framework Design

• Designed a multi-tiered governance model spanning trading, risk, operations, and IT functions.

• Defined stage-gate approval mechanisms across the full transformation lifecycle — from business case validation to production deployment.

• Implemented risk escalation pathways with defined thresholds, ownership, and escalation triggers.

• Created standardised governance templates for issue tracking, exception management, and sign-off workflows.

• Developed a Governance Charter linking decision rights to risk categories and control criticality.

2. Digitisation Enablement & Platform Integration

• Oversaw the rollout of CB Trader and Imagine, ensuring front-office execution systems seamlessly integrated with risk and operations layers.

• Designed front-to-back data flow architecture, connecting trade booking, risk analytics, and operational controls.

• Ensured the systems supported real-time risk management, trade valuation, and financial control visibility.

• Defined system control checkpoints to verify pricing, booking accuracy, and reconciliation between trading and finance functions.

3. Risk & Control Oversight Enhancement

• Introduced Business Control Operating Standards aligning risk management across jurisdictions and business units.

• Implemented control testing frameworks for scenario analysis, ensuring pre-deployment validation of key workflows.

• Created risk escalation dashboards enabling senior management to monitor outstanding issues by severity and business impact.

• Embedded continuous monitoring protocols into BAU (Business-As-Usual) processes to prevent control degradation post go-live.

4. Stakeholder Governance & Communication

• Established a cross-functional steering committee comprising senior leaders from Front Office, Risk, Operations, and Finance.

• Designed the RACI matrix to clarify ownership and approval rights at every transformation stage.

• Facilitated alignment between regional and global risk committees to ensure consistent governance across APAC.

• Delivered training and governance workshops to embed risk awareness and control accountability among key stakeholders.

5. Implementation Governance Model

• Defined a three-layer implementation model covering:

  • Strategic Oversight: Board and Steering Committee accountability.

  • Program Governance: PMO, risk, and delivery assurance controls.

  • Operational Execution: Change control, testing, and production migration.

• Established QA/QC checkpoints throughout project milestones to prevent control slippage.

• Developed post-implementation Control Assurance Reviews to validate control stability across local markets.

Key Deliverables

• Business Control Governance Framework (APAC-wide)

• Approval Stage-Gate Design & Templates

• Risk Escalation Pathways and Reporting Dashboards

• CB Trader & Imagine Integration Architecture

• Control Oversight Standards & Operating Procedures

• Governance Playbook & Change Management Toolkit

Client Benefits

• Established a robust governance framework ensuring consistent oversight across Equity Derivatives markets.

• Enhanced risk transparency through unified control testing and escalation structures.

• Achieved front-to-back process integration, reducing operational errors and manual interventions.

• Reduced regulatory risk exposure by embedding control validation within all transformation stages.

• Improved stakeholder alignment and decision accountability through structured governance and clear communication lines.

• Positioned the bank for scalable transformation governance applicable to future system implementations.