The personnel equipment

Personnel minimum requirements

A multiplicity of processes of the Backoffices presupposes four-eye control. Thus for example exchange data are entered by a person and/or authorized for the first time with a to a large extent automated process and released by a second person. Six-eye processes are the exception.

As minimum size for the personnel equipment therefore a number of employees of four persons is considered to a completion, if maximally four-eye control plans the safety pre-assembled honours for all processes. With this occupation size a coworker can go in each case in vacation. If a further person precipitates illness, the processes can be further duly accomplished. In order to ensure smooth operational sequence also with a further medical case, corresponding passwords and work instructions are if necessary deposited for the emergency for a further circle of acquaintances, which are kept in sealed envelopes in a safe deposit or in an other, to a large extent secured place.

These requirements of the personnel equipment make clear, why it falls in particular medium-size enterprises heavily to convert those for a normal operational sequence of the finance management necessary separation between trade and completion. Medium-size enterprises usually manage, in which they settle the tasks in departments, whose tasks of core lie in another range. Thus for example the daily and date money trade are noticed by coworkers of the Controllings as Nebenaufgabe, while the tasks of the Backoffice are assigned to the accounts receivable.

IT-specialists

Since EDP-supports many processes run off and it acts thereby regularly over of usual software level pool of broadcasting corporations of an enterprise deviating systems, occasionally IT-specialists rank in some enterprises among the coworkers of a completion. Their task is the Sicherstellung of the operating ability of the systems used in the finance management as well as the support of the EDP interfaces. From view of the completion thereby at least three interfaces are to be cared for by IT-specialists on the basis of the Treasury system as application of cores:

• the interface to the accounting system
• the interface to the confirmation system
• the interface into the exchange systems

Frequently the completion has also at least one entrance to market data systems as for example Reuters or Bloombergs to be able to determine in order to be able to examine whether business was locked conforming to market trends or with variable paid interest on financial instruments the interest rate.

To the enterprise-internal customers of the IT-specialists at least also the Finanzrisikocontrolling as well as the trade belong in enterprises. Both departments use also the Treasury system as Kernsystem, but use thereby usually still further systems. Thus a large trade department beside the market data system uses usually at least one commercial platform, which have then according to interfaces to other systems. Many enterprises prefer it therefore setting up those expiration-organizational more neutrally the finance management of assigned IT-specialists in their own department or team. With financial establishments this is the standard.

The problems

Between the coworkers of a completion department and those a trade department exists with the most enterprises and banks a clear training downward gradient. Coworkers of the trade usually exhibit a study, coworkers of the Backoffices have under normal conditions a material graduation and to complete afterwards commercial training, which is in the best case bank teachings. At least with individual banks this training downward gradient is arranged increasingly also as a potential risk. Despite the personnel separation between trade and completion a close co-operation between the two departments is necessary, i.e. the coworkers of the completion and the trade stand work-daily with one another in the close exchange. A coworker of the Backoffice must react however in the case of a deviation between the business confirmation of a contractor and the transaction seized by the trade in the Treasury system and introduce escalation measures if necessary. The first measure is usually a check of the completion coworker with the dealer, because such deviations in normal case are based on incorrect inputs and thus simple manufacturing defects. If it does not concern however simple input errors, the danger exists that the better trained colleagues of the Frontoffices convince its colleague the deviation than ignoring business-typically. This risk rises, the more an enterprise at complex instruments such as raw goods derivatives or other instruments as for example weather derivatives lock. As counter measure above all banks invest in larger measure into the further training of the coworkers of the Backoffices.

Completion - support process or

The tasks, which a completion notices, rank on enterprise side from economical view among the support processes, which must be noticed, which do not belong however to the tasks of core of an enterprise, since they represent no direct customer use or secure competition advantage. With financial establishments is the allocation of the tasks of the Backoffices to the Kernprozessen close, since a well working Backoffice both to the customer satisfaction contribute and can a competition advantage mean. Customers would be here both other financial establishments and enterprises, which lock financial establishments with financial transactions. Frequently unsatisfactorily implemented confirmations or the late fulfilment of liabilities can to it lead that contractors paint this Finanzinstitut of the list of the contractors, with which it such transactions would lock.

As support process the tasks of the Backoffice become occasional with enterprises thereupon it examines whether they represent an outsourcing potential. Up to now however no enterprise is well-known, which converted this. Reason both the sensitive data might be, with those a Backoffice go around - final financial transactions let backclose on the risk financial risk of an enterprise - and the close temporal succession of the processes between Frontoffice and Backoffice, which make a paging of a part of the processes difficult.

With financial establishments in the last years however some steps were undertaken to fold up completion functionalities. Some internationally active major banks concentrated tasks of completion on in each case a location in Europe (mostly London or Dublin), North America and Asia (mostly Singapore). A trade department of a financial establishment that with German-language enterprises for example for the security of the Wechselkursrisikos locks financial instruments, settled in Frankfurt/Main, would co-operate then with a completion department sitting in London or Dublin, which cares for one apart from the trade department in Frankfurt for example also in London resident trade department. These measures are encountered both within the financial establishments and the enterprise customers discontent - despite to a large extent automated and EDP-supported processes a direct contact between Frontoffice and Backoffice is necessary, in order to make smooth processes possible.

Literature

• Bernd Saitz, franc brown (Hrsg): The control and transparency law - challenges and chances for the risk management, Gabler, Wiesbaden, 1999, ISBN 3-409-19018-X
• Henner Schierenbeck (Hrsg): Risk Controlling in practice - legal basic conditions and business-political conceptions in banks, insurance and industry, shepherd Poeschel publishing house, Stuttgart, 2000, ISBN 3-7910-1682-2

Related links

• Minimum requirements to the operation of commercial transactions that credit institutes
• Explanations concerning individual regulations of the minimum requirements to the operation of commercial transactions of the credit institutes

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