Results of SAP implementation of ERP for asset management and risks assessment in NPF Blagosostoyaniye

On January 10, 2012 the SAP CIS company and NPF Blagosostoyaniye announced end of the first stage of the project on creation of an accounting system, planning and control of active transactions and risk management on the SAP ERP platform. The EAG company became the contractor on implementation.

The SAP solution already at the first stage of implementation will allow NPF Blagosostoyaniye to increase effective management of basic data on investment partners, trust management agreements and securities and also market data, processes of accounting of active transactions, the analysis and reporting. On the next stages of implementation a system will be complemented with such functionality as calculation of the expanded list of performance indicators of active transactions and quality of assets, assessment of market risks, accounting according to IFRS, integration with an accounting system and a management system for credit risks. In total the project on implementing solution of SAP will last about 2 years: from November, 2010 to November, 2012.

NPF Blagosostoyaniye is one of the oldest non-state pension funds of Russia (it is founded in 1996) and has the highest the rating of reliability And ++. Since 2005 the gain of pension reserves of Fund made about 500%, pension savings - 373%. The fund services 2.4 million client accounts, and a total quantity of Russians who transferred the funded component of the retirement pension to NPF Blagosostoyaniye increased for the last five years by 105 times - from 9,900 people to 1.1 million people.

Taking into account growth of scales of activity of Fund the used management tools assets, risks assessments, the analysis and the reporting ceased to correspond to the become complicated tasks and the increased volume of the processed information. The leadership of Fund made the decision on transition to a new accounting system, planning, control and risks assessment and on the choice of such solution on results of an open competition.

During competitive selection by the management of NPF Blagosostoyaniye software products in the field of asset management from different foreign producers and also competence of the companies offering implementation services of these products were considered. The completeness of functionality of systems, existence of successful implementations in Russia and in the world, existence of Russian-language localization and also cost of licenses became selection terms. For implementation the module SAP ERP Treasury and Risk Management, polnenny by functionality of SAP Business Information Warehouse was selected from NPF Blagosostoyaniye.

During the project the results allowing to increase efficiency of activity of Fund in the field of asset management were achieved: basic data on investment activities, market data and data on active transactions are centralized, accounting of active transactions is unified, the labor input of creation of the management reporting for status monitoring of an investment portfolio is reduced. Now in a system 10 employees of Fund work, on the next stages of development of the solution their quantity will increase up to 20 people.

"Implementation of the planned functionality of a system of accounting and control of active transactions and financial risk management will allow to create in Fund a common information space for all divisions involved in asset management processes and assessment of neighboring risks. The successful completion of works on implementation of the first stage of functionality of a system validated the choice of SAP TRM and SAP BW as bases for its creation", - the project manager on implementation from NPF Blagosostoyaniye Veretentsev Dmitry Vladimirovich noted.

"The SAP solution ERP allows to optimize business process management, crucial for financial institutions: asset management and risks assessment. Taking into account the social importance of activity of NPF Blagosostoyaniye, the transparency reached during implementation, efficiency and relevance of the used data are an important component of stability of work of Fund and growth of welfare of his investors", - Shulipin Ilya, the Director of work with financial institutions of SAP CIS noted.