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Streamlining IFRS 17 Compliance for enhanced control and risk mitigation

  • Publish Date: Posted 12 months ago
  • Author:by Carlos Mingo
Implementing Mitratech ClusterSeven EUC Management Tool

As part of a larger finance transformation programme, our client, a leading insurance company, embarked on a journey to implement the new International Financial Reporting Standard (IFRS) 17 for insurance contracts. The adoption of IFRS 17 necessitated the effective management and compliance of End-User Computing (EUC) applications, particularly Excel spreadsheets and existing aggregations/reports that were now within the scope of IFRS 17.

They faced challenges in managing and ensuring compliance of their EUCs in the context of IFRS 17. The existing Excel sheets and aggregations/reports, which were previously used for various financial processes, now required adaptation to meet the specific requirements of IFRS 17. The lack of visibility, control, and accountability over these EUCs posed risks of errors, data inconsistencies, and non-compliance. They needed a solution that could effectively manage both newly created Excel sheets and existing aggregations/reports, ensuring compliance and mitigating risks associated with IFRS 17. 

To achieve this, they partnered with ECMS to implement the Mitratech ClusterSeven EUC Management Tool. 

The approach
  • Needs Assessment and Scoping: we conducted a thorough analysis of our client's Finance IFRS 17 project and identified the Excel sheets and existing aggregations/reports that fell within the scope of IFRS 17. Assessing the specific requirements and adaptability of these EUCs to meet IFRS 17 compliance.

  • Solution Design: Based on the needs assessment, we designed a tailored solution using the ClusterSeven EUC Management Tool. The solution encompassed the management of both newly created Excel sheets and existing aggregations/reports, ensuring compliance and risk mitigation for the entire EUC landscape under IFRS 17.

  • EUC Inventory and Analysis: Working closely with our client's finance teams, we created a comprehensive inventory of both new and existing EUCs relevant to IFRS 17. Then analysed the functionalities, data flows, and calculations within these EUCs to ensure accurate compliance with IFRS 17 requirements.

  • Risk Assessment and Control Measures: The EUC Management Tool performed a comprehensive risk assessment on the identified EUCs which allowed us to identify and mitigate risks associated with data accuracy, formula errors, and potential non-compliance. From there, we implemented control measures within the ClusterSeven tool to address these risks.

  • Compliance Monitoring and Reporting: ClusterSeven provided real-time monitoring of EUCs for compliance with IFRS 17. The tool verified adherence to predefined compliance rules, regulatory standards, and internal control frameworks. We configured the tool to generate automated compliance reports, simplifying audits and regulatory reporting.

The benefits
  • Enhanced Control and Compliance: The EUC Management Tool enabled our client to maintain control, visibility, and accountability over both newly created Excel sheets and existing aggregations/reports within the scope of IFRS 17. It ensured compliance with the requirements of IFRS 17, minimising the risk of errors and non-compliance penalties.

  • Mitigated Risks and Increased Accuracy: Through thorough risk assessments and control measures, the tool mitigated risks associated with data accuracy, formula errors, and compliance gaps. This resulted in increased accuracy and reliability of financial calculations and reporting under IFRS 17.

  • Streamlined Adaptation Process: The ClusterSeven tool facilitated the adaptation of existing aggregations/reports and the creation of new Excel sheets for IFRS 17. It provided a centralised platform for managing these EUCs, streamlining the adaptation process and ensuring consistent compliance across the organisation.

  • Improved Efficiency and Auditability: Our client experienced improved efficiency in managing EUCs related to IFRS 17, reducing manual efforts and enhancing productivity. The comprehensive audit trails and automated compliance reports generated by the tool simplified internal and external audits, ensuring transparency and auditability.

By implementing the Mitratech ClusterSeven EUC Management Tool in the context of their Finance IFRS 17 project, we successfully addressed the challenges associated with managing and ensuring compliance with Excel sheets and existing aggregations/reports under IFRS 17. Our client streamlined their adaptation process, improved efficiency, and increased auditability, establishing themselves as compliant and trustworthy in the insurance industry.