CYRMRU CAPITAL INVESTMENTS (CCI)

Cyrmru Capital Investments (CCI)

This assignment covers the following learning objectives: • Critically assess the function of EUC in contemporary organizations
• Show that you are aware of the hazards connected to EUC, particularly spreadsheet mistakes.
• Recognize the significance of human factors in the design of spreadsheets.
• Consider and debate techniques for reducing errors in spreadsheets used in academic research.
• Create appropriate management plans for managing EUC in organizations
• Recognize the function of management, legal, and technological policies in the regulation of EUC in organizations.
Investment company Cyrmru Capital (CCI)
1. Background: CymruCapital Investments (CCI) is a mid-sized bank that specializes in investment and corporate banking. The Financial Services Authority (FSA) oversees the bank, which has locations across Europe and the United States and employs 20,000 employees in more than 500 offices. The bank has experienced significant growth over the last five years and ended the most recent fiscal year with a profit of £2.9 billion.
Although it also deals in derivatives, foreign exchange, and commodities, CCI’s primary line of business is the underwriting of securities. On the capital markets, the bank underwrites freshly issued securities (Bonds and shares) from corporations and governments. Additionally, CCI also conducts bank underwriting—a thorough process of credit analysis—to underwrite loans and credit to a variety of customers.
Actuaries employed by the bank are in charge of determining the risks associated with its investments and, as a result, setting prices for the goods and services offered to customers.
2. CCI’s utilization of information systems for underwriting
The average investment bank, CCI, heavily relies on information systems to carry out its daily operations. The “Deal Capture System” is a formal mechanism used by the bank to formally document contracts made between CCI and clients. A custom financial modeling tool named “Aladin model builder” is also available at the bank.
The Deal Capture System, which is an FSA statutory requirement, enables the CCI to formally record all deal facts, including correspondence between the bank and the customer during the contract’s negotiation. This system is intended to be live so that the bank can see how deals are developing in real-time at any given moment.
Aladin is a model-building tool that determines a deal’s risk depending on the inputted data. Aladin provides an indicator of the risk levels CCI puts themselves to with each investment once the user has gathered the pertinent data.
The company also has a central information systems department that maintains its users, users’ software, and hardware. The IS department audits the employees’ data processing actions each year.
Internal auditing 3.
In a recent internal audit, it was discovered that the bank relied heavily on spreadsheets and that some of them were utilized for making crucial decisions. The audit found that CCI has more than 50,000 operational spreadsheets dispersed across the organization, ranging from simple financial spreadsheet models to petty cost claims.
The risk modelers were questioned by the auditors regarding why they seldom ever used the Aladin model builder and data capturing system. Users have criticized these systems for being rigid and slow. The Aladin model builder, in particular, is too limited; it cannot specify the model in great depth and necessitates significant re-configuration to remain current with shifting market conditions. Due to this, spreadsheet software is now widely used as the main method for determining risk levels, pricing levels, and negotiation strategies.
The auditors’ further research discovered that practically all of CCI’s underwriting transactions involve spreadsheets. The corporate systems are frequently activated following the negotiation and agreement of the deal on a spreadsheet. The users argue that without spreadsheets as their major tool for negotiating contracts, they would not be able to perform their jobs effectively.
A small sample of spreadsheets that the employees regularly utilized was evaluated by the auditors. The sample included spreadsheets for a variety of purposes, including straightforward administrative tasks like tracking expenses, data stores for client contact information, decision support spreadsheets used by department heads to plan resources, and spreadsheets for financial modeling used by actuaries to evaluate risk and set prices for contracts.
The auditors could find no proof that any of the spreadsheets had been created according to a process, tested, or had official documentation. The majority of department heads who the auditors questioned about how spreadsheet model integrity is maintained at the departmental level referenced the CCI End User Computing policy, which all employees ratified.
In order to ensure that CCI conforms with the U.S. Sarbanes Oxley Act (2007), the End User Computing policy was established. The current EUC policy only keeps track of where EUC artifacts (such as spreadsheets and databases) are located on the corporate network and calls for the signatures of the department heads and the work’s author certifying the accuracy of the data contained in the EUC artifact. The EUC policy holds writers and department heads responsible for the integrity of the information contained in the spreadsheets. When questioned about the efficacy of the EUC policy, heads of departments replied that due to their limited familiarity with databases and spreadsheets, they couldn’t judge with objectivity whether the information provided is correct. As a result, they sign the paper in good faith and have faith that the actuaries’ work is accurate.
The senior management team has requested a report describing the risks to CCI and a practical strategy for mitigating the risks to which the bank is exposed after receiving the auditors’ observations.

4. The job
For the senior management, you have to put together a 5000-word paper addressing the issues CCI is facing.
1. To begin with (50%), you must describe the dangers of using spreadsheets and connect them to CCI’s spreadsheet activities and procedures. The dangers that CCI is exposed explicitly to should also be highlighted in your report, along with any prominent poor practices. Use examples and citations from the literature in your paper.
2. Next, you must submit a proposal for a novel method of risk management for CCI’s spreadsheets (50%). You are free to employ any strategy you like, but you may not fully abandon the usage of spreadsheets in CCI. You should consider the 50,000 operational spreadsheets that CCI uses when developing your strategy.

grading standards
A (70+) a thorough submission. With a strong critical focus and adequate breadth and depth, spreadsheet literature is reviewed utilizing a variety of sources and citations. The precise risks that CCI poses are well-explained and justified. The suggested strategy for reducing and managing the risks is well thought out, creative, and actually workable.
B (60-69) An excellent submission. The breadth and depth of spreadsheet literature are discussed, along with some critical analysis and a significant number of citations. The special hazards that CCI poses are recognized and supported. The recommended strategy for reducing and controlling the hazards is well thought out and doable in practice.
C (50-59) is a sensible argument. The literature on spreadsheets is adequately detailed. However, it is primarily descriptive and has few citations. Realization of the particular risks that CCI poses with some justification and explanation. The recommended strategy for reducing and controlling the hazards has been given some thought.
D (40-49): A decent submission. Spreadsheet literature is only briefly and superficially discussed, with little critical analysis. There aren’t many citations used. Although adequately understood, the precise hazards CCI poses lack sufficient rationale or explanation. Although there are signs of misunderstanding and impracticality in the suggested technique for limiting and controlling the risks, it is nevertheless acceptable.
Fail<40 The contribution does not meet the minimal standards required for a D grade.
Handling specifications

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