BaaS®

Comprehensive Solution for

AUDIT
Setting the Context
A start up started in 2018 by an entrepreneur with 42+ years of
experience in Banking and IT

Minimise (for software products)

• Dependence on Vendor
Objectives
• Total Cost of Ownership

BaaS is an audit application that automates the entire lifecycle of

audit covering Planning, Audit Execution, Response, Review and
Closure

Audit is less impacted by technology so far in relative terms.

Why Audit Operational Risk is not considered as exotic as Market/Credit risk
Audit Process- Global Issues

Consistency in Wrongful Real Time

audit outcome Compliance Reporting

Analytics that help Comparable Measure Usability

decision making for operational risk
 Audit in Cooperative Banks- Issues

Very Few Seniors Adherence to timelines

Conflict of Interest
FACTORS
ISSUES Low level of job knowledge

Absence of Inspection Adequacy of Checklist

FACTORS Department Currency of Checklist
ISSUES

Sample Verification
Erroneous Compliance Ad-hoc Verification
FACTORS Verification during next audit
ISSUES
 Audit in Cooperative Banks- Issues
How does Solve?

SOLUTION

System defined planning as per the expected frequency.

Centrally defined check list and validation that all checklist items are verified so that less experienced
people can audit.

Six level hierarchy of audit checklist to ensure adequacy.

Ability to centrally update checklist any time.

Upload of documentary evidence

File of 7.41 MB
can be reduced
to 163 kb
without loosing
quality
 Financial Institutions - Complexity and Resolution
Branches, Backoffice and Controlling Offices have different focus areas
Diversity Different Lines of Business

Configurability
Virtual Units
Varying levels of organisation hierarchy
Hierarchy Different Levels of empowerment
Varying Processes

Multiple Audits with varying frequencies to the same auditee unit

Multiplicity Rating Models to measure operational risk
Source of
Sources of Visibility Controls Resolution
Confidentiality
Complexity Confidential Reporting

New Lines of Business

Business

Scalability
Growing network of branches
Growth Changes in organisations structure

Regulatory New Regulations

Changes Changes to existing regulations

Audit of Product Audit

Virtual Entities HR Audit
 What does Offer ?
Audit Setup

• Multiple Audits
• N level Organisation Hierarchy
• Completely Configurable Audit Checklist
• Configurable Rating for Different Audits

Audit Planning

• Automated Planning of Audits

• Off Site Audit
• Leave Plan for Auditors
• Ad-hoc Audit

Audit Process

• Audit Execution-Capture-Response-Review
• Automated Rating of Branches
• Audit Closure and Carry Forward
• Upload of Multiple Documents

Decision Support

• Confidential Audit Report

• Powerful Dashboards
What does Offer ?
Usability

• Global Search
• Sorting
• Hide and Show Columns
• Modify Column Width
• Online help

Value Add

• Optional export of data from all the screens

• Skill Set Validation during planning
• Effort Validation during Planning

Integration

• Core Banking
• Loan Management System
• Single Sign On
• Email
• SMS
 Roles in the system
Admin

• User Management-Technology Team

Operations

• Maintenances and Planning- Head Office Audit

Auditor

• Initiate and Submit Audit-Lead Auditor

• Capture Observation- Lead and Member

Branch

• Start and Close Response-Branch Lead

• Capture Response-Lead and Branch User

Reviewer Lead

• Start Review, Close Audit, Carry Forward Audit

• Accept or Reject Response

Reviewer

• Accept or Reject Response

Senior Management

• View
Audit Setup

What Scope? Who to Audit?

• Specify the Audit • Units to be
Name • Activities audited • Who shall audit?
• How frequently covered
the audit is done
Whom to
Which Audit?
Audit?
Multi Dimensional Definition for Audit Setup

Group Sub Activity Process Finding

(%) Group (1-n (1-n (1-n
(%) ranking) ranking) ranking)

Opening an Proof of
Account residence is on
Demand record
Deposits
Proof of ID is
Savings on record
Financial Deposits
Operations

Audit Term Deposits Photo is on

Non Current record
Deposits
Financial

Non Resident Signature is

Deposits Closing an scanned
account
 Audit-Process flow Save as Draft
• Visibility to Self

Submit Save
• Visibility to the • Visibility to my
rest of the world team

• Decide the plan

Capture • Respond to an
Review
period. Observation.
• Initiate • Accept Response
• Identify audit units • Respond to an Audit
• Capture Observation • Reject Response
• Decide dates
• Rating • Close Audit or
• Decide auditors
• Submit Audit • Carry Forward

Plan Respond
Risk Rating
Percentage Sum (Agi*Asgi*Ai*Pi*Oi)
of NCP = -----------------------------------
non compliance Sum (Agi*Asgi*Ai*Pi*Fi)

Percentage CP = 1- NCP
of
compliance

# Minimum Maximum Risk Category

1 90% 100% Low

2 80% 90% Medium

3 60% 80% High

4 50% 60% Very High

5 50% 0% Extremely High

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Technology Stack
# Description Details
1 Platforms UNIX based (CentOS or Ubuntu)
2 Authentication Role Based , Ldap Integration, SHA 512

3 Authorization Token Based (Oauth 2.0)

4 App Server WildFly 9.0

Web Server Apache Tomcat 8.0

5 Databases MYSQL 5.7
6 Ops Environment Server - UNIX based AWS with Load Balancing
Client - Desktops and Mobile Browsers
7 Languages Java, JavaScript, PL/SQL
8 UI Frame Works Angular Js

9 Frame Works Spring 4.0

10 Reporting Panteho 7.0 Community Edition
11 ORM Hibernate 4.0 19
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Deployment Architecture - Cloud

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 Pricing Model-Cloud
Bank 1 Bank 2 Bank 3 Bank 4
Year 2017-18 2017-18 2017-18 2016-17

Profit in Lakhs 3370.00 705.00 428.00 329.00

One time set up fee 1.00 0.50 0.25 0.25

Monthly Subscription 0.86 0.42 0.32 0.20

Annual Subscription 10.32 5.04 3.84 2.40

Annual Cost as % of profit

0.31% 0.71% 0.90% 0.73%

First Year Cost as a% of Profit

0.34% 0.79% 0.96% 0.81%
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Thank You for your time

Contact Details T Ravi Kumar, ravikumar.t@finakon.in www.finakon.in +91 9849 805 034