Cases

Defining Standard Operating Procedures and MIS reporting for a Brokerage House

Background and Challenge

The company was in its tenth year of operations and had doubled in the last one year both in volume of business and in people. It was also expanding through setting up branches in different cities. However, the company was struggling to manage its growth and needed to define the following:

  • Standard Operating Procedures (SOPs)
  • Risk Management Framework
  • MIS system (including exception reporting)

Approach and Recommendations

To define SOPs and MIS reports, UC adopted the following approach:

  • Conducted interviews with the key personnel in the organization to understand the various processes

    1) Identified all core processes of the brokerage business

    2) Identified risks (operational, compliance, financial) in the processes

  • Defined the SOPs for cash market, F&O market and portfolio management services including the following:

    1) Process maps

    2) Risk controls (Financial, Compliance and legal)

    3) Triggers for exception reporting

    4) Standard formats

    5) Authorizations

    6) Head office – branch interfaces

    7) Organization structure for the HO back office and branch

  • Reviewed and rationalized the current MIS reports for relevance and adequacy

    1) Eliminated duplication and redundant reports

    2) Introduced new reports to support overall business strategy

  • Defined an exception reporting framework including triggers, risks, deviations from operating procedures, recipients, actions to be taken, and frequency for all the relevant broking processes

Results

The client received a streamlined business processes structure with defined SOPs, risk management framework and MIS.