Exploring Banking Loss Event data with Watson Analytics

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Exploring Banking Loss Event data with Watson Analytics

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This IBM Watson Analytics use case shows you how you can analyze loss event data from IBM OpenPages GRC using the updated Watson Analytics user experience.  (If you haven’t already signed up for Watson Analytics, you can do so here for free.)

For the purposes of this use case, We are working on the risk team of a financial services enterprise and we need to review and analyze 7 years of loss events recorded in OpenPages which can be download from here.


After we login we will see three main tabs and am currently positioned within the Data tab.  The Discover tab is where you will explore and discover the data you have in Watson Analytics.  The Display tab takes the discoveries and assembles them into rich stories, dashboard and infographics to share.  It all begins with your data, so the first thing to do is import the spreadsheet in Watson Analytics.

1.    Tap the New Data button.

2.    Tap the Local file tab, then tap the Browse button to select the spreadsheet you downloaded for the win/loss analysis.
3.    Tap the Import button.

Import Data

After importing the spreadsheet into Watson Analytics, where we can directly access the Excel file that I exported from the Loss Events pages in OpenPages . We can analyze the data in five steps.


Step 1. Discover your Data

When we click the tile created by the import and Watson Analytics immediately positions me into the “Discovery” functionality which provides me with a set of suggested questions or starting points that you can use right away.  You could also type your own question here too. If I am seeing a question in the tiles that make sense for me, I could simply click on the tile to get the result.  Note that each tile has a graphic showing you what to expect in the result.
Let’s start by looking into the trend of the net loss by year.

Watson Analytics presents a list of possible interpretations of what you wanted.  As it turns out, the first tile identifies exactly what we want, let’s select this question.  When I look at the figures, it appears that the budget safeguard we put in place in early 2014 worked as expected after that big loss in 2013.

Next, we should check the trend of net loss by region by dragging the “Region” field (circled above in red) from the data tray directly onto the data visualization. Now we see the safeguard also worked as expected for all the countries: a great result.


Step 2. Be open-minded and take suggestions from Watson Analytics

Watson Analytics provides suggested lines of inquiry on the right based on interesting data distributions it finds adjacent to our current analysis.  These suggestions change as I change my line of inquiry.  I note that Net loss by business is very relevant, so lets evaluate this discovery by clicking on this tile. When we do that, we learn that our Corporate Finance and Retail Banking businesses account  for close to half of the net loss of my company.  Yikes!

Lets tweak the visualization to use a treemap by clicking on the left “Visualization” icon”.

And then select the Treemap visualization.


We now see an interesting view of net loss by business.

Step 3. Use Predict to review a model with net loss as the target

Watson Analytics discovery capabilities also apply to predictive analytics.  Next, we ask the question: “What drives Net Loss”. Watson Analytics creates a spiral diagram where the factors most likely to correlate with the outcome (called “predictors” or ”drivers”) appear closest to the center. Here, business unit and risk sub-category are the top predictors with a predictive strength of 75%.

By clicking the   icon next to an item in the list of drivers we are able to zoom into the details of this model.   We can see that the top issue with Net Loss is the relationship with Vendors or Suppliers with our Corporate Finance.  Mouse over the cells to get details as shown below.


Let’s rename the tabs for our Discovery Set and then save it:
1.    Click on a tab name and then click the “pencil” icon to edit the tab name.
2.    Click on the disk icon on the top right ( losssave  ) and provide a name for the Discovery Set.
3.    Close the Discovery Set using the drop menu as shown below.


Step 4. Assemble the data within a Display

We can quickly put these findings into an interesting Display such as a dashboard or Infographic to share with others.  Click on the Display tab and then click “+ New display”.

Select the Dashboard option and then select the four quadrant display template.

On the left, we will be able to locate the previously saved Discovery set in the personal folder assuming we saved in the default location.  Expand your Discovery Set and select a visualization.
Drag or click the four visualizations from the Discovery set onto each of the quadrants of the template (the blue box will glow to show you when to drop) and save the Display using the disk icon as you had done before.

Step 5. Share the new insights!

These findings are significant and we will want to share them with the VP of Risk.  We could use shared folders if the VP is also a user in the same Watson Analytics account or we can share with anyone using PDF, Powerpoint or Image files via email of download.

Click on the share lossshare   icon, select Email and then select “PDF”.  Using download or email, the person you are sharing with does not even need Watson Analytics to benefit from my analysis.


Great Job!  Don’t stop there apply these analytics to your own data!