Using Business Intelligence For Market Risk Management Strategic Planning In Banks And Financial Institutes

Automatic extraction strategies in the banks and financial institutes are a challenging issue. Business intelligence (BI) can help banks and financial institutes evaluate the status of the market risk in their banks using key performance indicators (KPI) for large amounts of data. In this study, BI and bank KPIs were used to extract rules for market risk management from a functioning bank using an association rules algorithm. A set of association rules that satisfied predefined thresholds was chosen and used to complete the cells of a SWOT matrix as opportunities or weaknesses . A data warehouse cube was employed to extract rules using predefined thresholds. The procedure was successfully tested at a bank in Iran. The extracted strategies decreased the loss of the bank. Taking advantage of the opportunities allowed the bank to increase profit and decrease risks significantly.

Keywords:

Business intelligence , Strategic planning , Market risk management , Association rules , SWOT matrix