Lessons learned implementing XBRL in the Bank of LESSONS LEARNED: BUSINESS ORIENTATION TO PROVIDE THEM

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  • Information Systems

    Lessons learned implementing XBRL in the Bank of Spain

    Maite Sainz

    Head of the Management Systems Division II, Bank of Spain

    XBRL Week

    Madrid 2015

  • INFORMATION SYSTEMS 2

    10 YEARS OF XBRL IN BANK OF SPAIN

    Appraisal Companies

    (COREP extension)

    Solvency Information

    (COREP extension)

    (FINREP extension)

    Sectorial Statements

    (FINREP extension)

    Taxonomy development

    2004

    Public Statements (IFRS)

    2006 2008 20092007 2010 20112005 2012 2013 2014 2015 2016

    IAC.01 Mutual guarantee Exchange offices

    Remuneration statements

    Protection of mortgage

    debtors

    of Practice guidelines Statistics Code

    of Practice guidelines

    EBA COREP

    EBA FINREP

    EBA AE, SBP, …

    FINREP SOLO

  • INFORMATION SYSTEMS 3

    10 YEARS OF XBRL IN BANK OF SPAIN

    Appraisal Companies

    (COREP extension)

    Solvency Information

    (COREP extension)

    (FINREP extension)

    Sectorial Statements

    (FINREP extension)

    Taxonomy development

    2004

    Public Statements (IFRS)

    2006 2008 20092007 2010 20112005 2012 2013 2014 2015 2016

    IAC.01 Mutual guarantee Exchange offices

    Remuneration statements

    Protection of mortgage

    debtors

    of Practice guidelines Statistics Code

    of Practice guidelines

    EBA COREP

    EBA FINREP

    EBA AE, SBP, …

    XBRL Standards / practices evolution

    XBRL 2.1

    XBRL Dimensions

    XBRL Formulae

    Table Linkbase

    DPM Methodology

    Enumerations Extensible

    Enumerations

    Multi instanceMulti-instance validation

    FINREP SOLO

  • INFORMATION SYSTEMS 4

    10 YEARS OF XBRL IN BANK OF SPAIN

    Appraisal Companies

    (COREP extension)

    Solvency Information

    (COREP extension)

    (FINREP extension)

    Sectorial Statements

    (FINREP extension)

    Taxonomy development

    2004

    Public Statements (IFRS)

    2006 2008 20092007 2010 20112005 2012 2013 2014 2015 2016

    IAC.01 Mutual guarantee Exchange offices

    Remuneration statements

    Protection of mortgage

    debtors

    of Practice guidelines Statistics Code

    of Practice guidelines

    EBA COREP

    EBA FINREP

    EBA AE, SBP, …

    XBRL Standards / practices evolution

    XBRL 2.1

    XBRL Dimensions

    XBRL Formulae

    Table Linkbase

    DPM Methodology

    Enumerations Extensible

    Enumerations

    Multi instanceMulti-instance validation

    FINREP SOLODPM Architect

    Remuneration statements

    XBRL Prototype

    Basic XBRL Infrastructure

    System for Public Statements

    XBRL Formula integration

    Taxonomy viewer

    XBRL Forms

    Metadata oriented version of the system

    Legacy System Migration

    + MI Validation

    Application / infrastructure

  • INFORMATION SYSTEMS

    CHANGES IN THE LANDSCAPE OF EUROPEAN SUPERVISION

    EBA

    ITSs

    SSM

    XBRL

    DPM

    5

    - Important Institutional and organization changes:

    - CEBS - EBA - SSM

    - XBRL’s been just a small piece leveraging this changing process

    - But changes produce resistance…

  • INFORMATION SYSTEMS

    LESSONS LEARNED: IMPORTANCE OF PROPER COMMUNICATION PLANS

    6

    Key in any process of change

    A good understanding of the process will produce benefits very soon -What? -When? -Why?

    Consider a wide audience: -Credit institutions -Providers and the software industry -Your team!

  • INFORMATION SYSTEMS

    LESSONS LEARNED: THE QUALITY OF THE TAXONOMY KEY

    7

    Credit institutions

    Supervisor

    High quality data

    The purpose of reporting processes is to collect data: - Accurate - High quality - Traceable (avoiding manual intervention)

  • INFORMATION SYSTEMS

    LESSONS LEARNED: THE QUALITY OF THE TAXONOMY KEY

    8

    Credit institutions

    Supervisor

    Clear communication of reporting

    requirements

    To obtain accurate data: - Reporting requirements must be clearly defined - Financial concepts must have an unambiguous definition - The definition of quality controls is an effective mechanism

    to identify problems in the exchange of data

    Focus in increase efforts in XBRL validations: - Credit institutions can make data validation in origin - The definition of quality controls is an effective mechanism

    to identify problems in the exchange of data - The analysis-correction time is reduced - Mind error messages!

    This is the purpose of XBRL taxonomies and the DPM approach - Don’t spare efforts in the development of the taxonomy - High quality taxonomies produce high quality data - Mistakes in taxonomies or lack of stability in design criteria

    have a high cost in the reporting process

  • INFORMATION SYSTEMS

    LESSON LEARNED: YOU CANNOT DO IT ALONE

    9

    By using standards we benefit from the efforts of a whole community…

    Collaboration with public institutions and

    organizations

    • EBA • ECB • IFRS Foundation • XBRL International • Eurofiling community • XBRL Europe • XBRL Spain….

    XBRL Specs tailored to European

    Supervisors needs

    • Dimensions • Formulae • Table Linkbase • Extensible

    Enumerations • …

    Many solutions available in the market

    • Software companies • Consultants • Training • …

  • INFORMATION SYSTEMS

    LESSONS LEARNED: BUSINESS ORIENTATION TO PROVIDE THEM AUTONOMY

    10

    Our ultimate purpose is to provide better solutions - To make our business processes more efficient - To improve the quality of data in supervision flows - To reduce costs (both in our institutions and the banking industry) - To give autonomy to our business users

    Don’t get lost in a quest for technical excellence: - Think first of the benefit to end users - Perfect is the enemy of good - Early delivery of simple and small solutions is more effective - Empathy with the end users is important to understand their needs

    Business orientation… but also business involvement! - Early and continuous business implication - XBRL internals is IT stuff, but business users must lead the

    construction of a unified financial vocabulary

  • Information Systems

    THANKS FOR YOUR ATTENTION Maite Sáinz