Mini case - solution made by summer interns
ODIN cut 86.6% risk by increasing the quality in orders
86.6% reduction
in risk
0 reversals
in pilotproject
5 weeks
to make solution
ODIN case studies
Intro
ODIN wanted to increase the quality of on-demand fund orders to reduce risk. Bad order quality can result in an expensive reversal and, in some cases fines.
To lower the risk, ODIN extended their application Business Control with a more efficient and complete order process - in only five weeks.
Challenge
High risk with over 200 daily on-demand orders
Every day ODIN typically manually handles up to 200 on-demand mail or phone orders. These orders are created manually, which comes with a risk of error.
Funds are traded and settled every day at a fixed rate. Reversing a trade that has been settled can affect the price or trigger fines. Last year customer service had to reverse orders daily, which is a high risk.
Reversals are due to:
— Misunderstandings
— Typos
— Locked orders, making it hard to do changes
— Wrong date or price
— Downtime in other systems
Solution
Increase quality by streamlining orders and gaining control with dashboards
ODIN decided to implement a new order process as an extension of their Genus application. The main goal was to increase order quality and therefore minimize the risk of human error. There were three central aspects to the new solution:
— Complete process. All orders must go through one and the same process.
— Order sessions. Orders can now be drafted, saved, and continued later.
— Order dashboard. An order overview, making monitoring easy.
Result
Quality in orders reduces risk by 86.6%
After the pilot ran for a month, there were no reversals; reversing a trade that has been settled can affect the price or trigger fines. Compared to an average of one daily reversal in 2021 – that is significant. By streamlining its orders, ODIN has cut risk by 86.6% because errors causing high risk are cut to a minimum. Customer service spends less time manually handling on-demand orders than before. Also, monitoring and troubleshooting ongoing orders are much easier.
The solution was created by two summer interns, collaborating with ODIN, in only five weeks.
«It's nice to be able to easily adjust yourself without having to send a change request that must be processed externally.»
- Thomas Onseid, Leader of ODIN Fund center
About
ODIN Forvaltning AS is a leading fund manager in Norway, offering mutual funds and bond funds with attractive pricing and profitable growth. Their business idea is to invest index-independent and value-based; it governs how they invest.
Since 1990, ODIN has created value through good management and advice. They currently have offices in Oslo, Stockholm, Gothenburg, and Helsinki.