Finance & Insurance

Risk Rule Engine and Automated Regulatory Reporting for a City Bank

Risk policy changes from two weeks to same day; reporting error rate below 0.3%

Risk Rule Engine and Automated Regulatory Reporting for a City Bank

Background

Risk policies were hard-coded in business systems. Each change required development scheduling, coding and regression testing — averaging over two weeks — too slow for market conditions. Regulatory reporting relied on staff manually extracting data from multiple systems: eight person-days per month, with errors corrected only the following month.

Solution

  • Rule engine: business users configure rules through a visual interface with version control, canary release and one-click rollback
  • Explainability: every decision returns the rules hit and their weights, satisfying model explainability requirements
  • Reporting automation: 11 report definitions mapped, with automated extraction and 180 validation rules
  • Audit trail: rule changes, data extraction and report versions fully logged and traceable

Outcomes

  • Risk policy change cycle cut from over two weeks to same-day effect
  • Monthly regulatory reporting from 8 person-days to 0.5, error rate from 3.2% to below 0.3%
  • Full traceability of rule changes and decisions; passed on-site regulatory inspection

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