Professional Documents
Culture Documents
Application
a monitoring system that automatically alters a rating (either
up or down) based on an event change – perhaps the filing
of new accounts or changes in directors. Using that system
can let you know if the credit limit you set for a customer six
months ago is still relevant. If your credit information pro-
Release &
vider doesn’t have a monitoring system in place, shop around
for a new one! And if you don’t have a credit information
provider, get one!
Continue
3rdto Fight
IBM LimitedFraud
Edition
Despite all your due diligence, you may still be taken in by a
fraudster. Fraud happens all the time, and no one is immune.
Commercial fraud is a multi‐billion‐pound threat that shows
no signs of abating. And it covers every industry sector, not
just fast‐moving consumer goods (FMCG). Don’t become
complacent. Ensure detection methods are in place or, better
by Eric Minick, Allan Wagner,
yet, utilise a credit information provider (such as Graydon UK
Claudia Ring
Ltd), which features a specialist fraud-detection team.
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36
Application Release
Understanding & Deployment
Credit
3rd IBM Limited Edition
For Dummies
Risk For Dummies, ,
Graydon Special Edition ®
Publisher’s
AsAcknowledgments
a credit professional, you hold a great responsibility for
the good of your company. Never forget that! Refuse to be
Some of the rushed
people who
intohelped bring
opening an this book to
account market
– even include
if you havethe following:
the head
of sales
Project Editor: breathing
Carrie down your
A. Burchfield neck. Be
Business diligent and thorough,
Development
ensure that everyone follows the procedures, Sue
Representative: andBlessing
don’t agree
Editorial Manager: Rev Mengle
to credit account facilities until you’re 100 per cent sure. You
Acquisitions Editor: Steveavoid Production Editor: Siddique Shaik
Hayesbad debts,
won’t totally but you’ll avoid most of them!
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36
Table of Contents
Understanding Credit Risk For Dummies, Graydon Special Edition
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Which Deployment
Understanding Automation
Credit Risk Solution
For Dummies, Is Right
Graydon for You?...........
Special Edition 21
Supporting current and future technologies.............................. 22
Provisioning environments on demand...................................... 22
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36
Introduction
Understanding Credit Risk For Dummies, Graydon Special Edition
S
Monitor Customers with a CIP
oftware applications are large drivers of business revenue,
and the timely release and deployment of those applications
Top‐notch credita information
has become providers
critical part of havelife
the business monitoring sys-
cycle. After all,
tems for clients’ use. Many credit information providers
what good is it to create an innovative application if you can’t have
a monitoring system that automatically alters a rating (either
deploy it to test environments efficiently or deliver it to users on
up or down) based on an event change – perhaps the filing
schedule?
of new accounts or changes in directors. Using that system
can let you know if the credit limit you set for a customer six
Traditionally, deployment automation is defined as applying a set
months ago is still relevant. If your credit information pro-
of application changes to an environment. Release management
vider doesn’t have a monitoring system in place, shop around
encompasses the governance and coordination of delivering these
for a new one! And if you don’t have a credit information
changes through environments seeking to ensure safe delivery
provider, get one!
into production. Release management and deployment automa-
tion differ but have the same objective: to continuously deliver
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36
Icons Used in
Understanding This
Credit Book
Risk For Dummies, Graydon Special Edition
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 »» 7 Proven
Understanding Practices
Credit Risk FortoDummies,
Strengthen ReleaseSpecial
Graydon
http://ibm.co/7ProvenPractices
Management:
Edition
Finally, youcredit
Top‐notch can read other For
information titles
Dummieshave
providers from the sys-
monitoring IBM
Ltems
imited
forEdition eBook
clients’ use. Series.
Many Visit
credit information providers have
http://ibm.biz/devops
a monitoring system
dummiesbooks for titlesthat
suchautomatically
as alters a rating (either
up or down) based on an event change – perhaps the filing
»new
of » DevOps
accounts or changes
For Dummies, in Limited
3rd IBM directors. Using that system
Edition
can let you know if the credit limit you set for a customer six
»» Agileago
months
For Dummies, 3rd IBM Limited Edition
is still relevant. If your credit information pro-
»» DevOps
vider doesn’tfrom APIsatomonitoring
have z Systems Forsystem
Dummies,
in IBM Limited
place, shop around
for aEdition
new one! And if you don’t have a credit information
»»
provider, get one!
Service Virtualization For Dummies, 2nd IBM Limited Edition
»» Hybrid Cloud For Dummies, IBM Limited Edition
Loop in Line Management
Don’t keep that new information you’ve collected all to your-
self! Liaise with your boss and other senior management and
keep them apprised about the company’s clients. Voice your
concerns. No one likes nasty surprises! Here’s your chance to
become a hero – or at least to say, ‘I told you so!’
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding Credit Risk For Dummies, Graydon Special Edition
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
IN THIS CHAPTER
1
can let you know if the credit limit you set for a customer six
Chapter
months ago is still relevant. If your credit information pro-
vider doesn’t have a monitoring system in place, shop around
for a new one! And if you don’t have a credit information
What Drives
provider, get one!
Loop in LineRelease
Effective Management
and
Don’t keep that new information you’ve collected all to your-
Deployment? self! Liaise with your boss and other senior management and
keep them apprised about the company’s clients. Voice your
concerns. No one likes nasty surprises! Here’s your chance to
become a hero – or at least to say, ‘I told you so!’
I
n today’s competitive world, being first to market can be the
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding Credithow
understanding Riskend-users
For Dummies, Graydon
view the Special
solution, Edition
use the solution,
and what enhancements they would like next. What a company
does with this new information and how it analyzes the feedback
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding Credit
In a DevOps RiskContinuous
world, For Dummies, Graydon
Delivery Special Edition
is complimented by
related principal of Continuous Feedback. Continuous Feedback
the
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding Credit
the delivery Risk For
pipeline. TheDummies, Graydon
first of which was Special
delays inEdition
the build package for the purposes of testing.
deploying
ADespite
deployment automation
all your solution
due diligence, youcan go astill
may long beway to eliminat-
taken in by a
ing this bottleneck
fraudster. and enabling
Fraud happens all the teams to begin
time, and no one testing earlier
is immune.
Commercial
or fraud to
shifting testing is athe
multi‐billion‐pound threat that
left. Using infrastructure shows
as code and
no signs of abating.
blueprinting to stand And
up (orit tear
covers
down)every industry sector,
environments not
on demand
justquickly
can fast‐moving consumer
provide a productiongoods (FMCG).
like Don’t become
test environment. The time
complacent. Ensure detection methods
sink testers faced is eliminated. External systems,are in place or, better
or parts of the
yet, utilise
system that aaren’t
credityet
information
ready can beprovider
modeled(such
using asaGraydon UK
service vir-
Ltd), which
tualization features a specialist fraud-detection team.
solution.
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding
Imagine aCredit
world Risk For
where Dummies,
a code Graydon
commit Special
from an Edition
application devel-
oper automatically triggers a build in your automated build solu-
tion. The automated build is run including the execution of unit
Loop»in
» Line ManagementThe ability to activate virtual services and simulate missing
software and services for end-to-end testing
»» Thekeep
Don’t that
ability to new information
launch you’ve tests
a set of automated collected all to
validating theyour-
self! functionality
Liaise with of your boss and other
an application end tosenior
end management and
keep them apprised about the company’s clients. Voice your
concerns.
Now No one likes
stop imagining, nastythis
because surprises! Here’s
capability your chance
is available today to
in
become
the a hero – ordeployment
IBM UrbanCode at least to say, ‘I told you
automation so!’
solution.
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding Credit Risk For Dummies, Graydon Special Edition
ESTIMATING THE
COST OF FAILURE
Monitor Customers with a CIP
A failure not only can cause a loss of revenue but also can cost your
Top‐notch more
organization credit information
money to fix the providers
failure. You have monitoring
can begin estimatingsys-
tems for clients’ use. Many credit information providers
the cost of failure of an application release by calculating an hour’s
have
a monitoring system that automatically alters a rating (either
pay for an engineer who is responsible for correcting the problem. A
up or down) based on an event change – perhaps the filing
rough calculation of additional costs is 20 percent to 40 percent of
of new accounts or changes in directors. Using that system
salary. Here’s the formula:
can let you know if the credit limit you set for a customer six
months ago
Estimated is still
annual salaryrelevant.
/ 52 weeks If per
your credit
year information
/ 40 hours per weekpro-
* 1.3
vider doesn’t have a monitoring system in place, shop around
Iffor
youahave
newan engineer
one! And ifwho
youmakes
don’t$80,000,
have a for example,
credit a reason-
information
able estimate
provider, of one!
get hourly total cost is
The
As anumber of manual steps
credit professional, youthat
holdgo into aresponsibility
a great single application’s
for
release may make up a laborious process, but the application
the good of your company. Never forget that! Refuse to be
inevitably ends
rushed into up inanproduction.
opening With iflarger,
account – even you havemore
thecomplex
head
of sales breathing down your neck. Be diligent and thorough,
ensure that everyone follows the procedures, and don’t agree
to credit account facilities until you’re 100 per cent sure. You
10 Application
won’tRelease
totally&avoid
Deployment For Dummies,
bad debts, 3rdavoid
but you’ll IBM Limited
most Edition
of them!
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding Credit
releases, risk Risk with
grows For Dummies, Graydon
the number Special Edition
of interdependent appli-
cations being released. Manual processes combined with primi-
tive release tracking solutions such as spreadsheets invite human
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36
Eliminating theRisk
Understanding Credit Release Weekend
For Dummies, Graydon Special Edition
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
IN THIS CHAPTER
2
of new accounts or changes in directors. Using that system
can let you know if the credit limit you set for a customer six
for Deployment
Loop in Line Management
Automation and
Don’t keep that new information you’ve collected all to your-
self! Liaise with your boss and other senior management and
keep them apprised about the company’s clients. Voice your
Release Management
concerns. No one likes nasty surprises! Here’s your chance to
become a hero – or at least to say, ‘I told you so!’
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 »» Deliver
Understanding incremental
Credit Risk Forchanges.
Dummies, Graydon Special Edition
»» Release what you test.
Monitor Customers with a CIP
We discuss these pillars in detail in the following sections.
Use thecredit
Top‐notch same process
information providers have monitoring sys-
tems for clients’ use. Many credit information providers have
One of the main
a monitoring problems
system that with scaling application
automatically deployments
alters a rating (either
to more complex scenarios and higher volumes
up or down) based on an event change – perhaps the is that siloed
filing
teams
of newand specialists
accounts often create
or changes custom Using
in directors. processes
that to fit their
system
own responsibilities.
can let you know if the Developers
credit limitareyou
often
set tasked with writing
for a customer six
deployment
months agoinstructions for operations
is still relevant. to use
If your credit in production
information pro- but
deploy to theirhave
vider doesn’t own aenvironments using simplified
monitoring system scripts.
in place, shop The
around
different
for a newneeds
one! often
And ifmanifest
you don’tin have
the following pattern:
a credit information
provider, get one!
»» Developers want to deploy and test quickly to implement
more application changes. They often create shortcuts in the
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36 Understanding Credit
Consistency in Risk
how For Dummies, Graydon
deployments Special Edition
are performed results in
increased confidence as you are now testing both the application
and the deployment process.
Monitor Customers
Automate, automate,with a CIP
automate
Top‐notch
Manual credit information
or half-scripted providers
steps in have monitoring
a deployment sys-
process increase
tems for clients’ use. Many credit information providers
the risk of deployment failure. Even skilled operators make mis-
have
a monitoring system that automatically alters a rating (either
takes, and error is more probable when humans must run through
up or down) based on an event change – perhaps the filing
a long list of manual steps. A deployment process (automated or
of new accounts or changes in directors. Using that system
manual) should include predefined quality gates or approvals that
can let you know if the credit limit you set for a customer six
a team must perform or meet for the deployment to enter the next
months ago is still relevant. If your credit information pro-
stage. By automating
vider doesn’t the deployment
have a monitoring systemprocess (or at
in place, least
shop what
around
you
for acan of one!
new it), you
Andmay adddon’t
if you compliance and auditability
have a credit informationthrough
increased
provider,visibility
get one! into
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36 Understanding Credit
application Riskshould
changes For Dummies, Graydon
be easy to Specialtesting
pass through
ronments and into production environments.
Editionenvi-
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding Credit Risk For Dummies, Graydon Special Edition
AVOIDING THE MONDAY
MORNING EFFECT
Monitor Customers with a CIP
The Monday Morning Effect occurs the Monday following a major
Top‐notch
release credit
weekend information
where the release providers
team may facehave monitoring
numerous prob-sys-
tems for clients’ use. Many credit information providers
lems, such as a break in production or defects in the application. The
have
a monitoring system that automatically alters a rating (either
release team is required to take heroic, immediate corrective action.
up or down) based on an event change – perhaps the filing
Restarting the release, correcting the mistake or mistakes, and ruling
of new accounts or changes in directors. Using that system
out other possibilities without incurring a substantial system outage
can let you know if the credit limit you set for a customer six
are nearly impossible. To avoid the Monday Morning Effect, deploy-
months ago is still relevant. If your credit information pro-
ments
vidermust be automated
doesn’t and consistent,
have a monitoring changes
system shouldshop
in place, be intro-
around
duced
for a incrementally,
new one! Andand release
if you activity
don’t have must be visible
a credit to everyone
information
involved
provider,withget
theone!
release.
LoopAutomating
in Line Management
and using the
same deployment process
Don’t keep that new information you’ve collected all to your-
When you use
self! Liaise withthe same
your bossautomated
and otherdeployment process across
senior management and
multiple application life cycles, you greatly
keep them apprised about the company’s clients. Voiceaffect the overall
your
release
concerns.in a No
positive way. nasty
one likes The release is lessHere’s
surprises! error-prone and takes
your chance to
much
become lessatime
heroto– perform.
or at least to say, ‘I told you so!’
StickManaging
to Yourdefects and decreasing risk
Guns
There are three contributors to defects: code, configuration, and
complexity.
As a credit Complexity here
professional, yourefers
holdto the number
a great of interdepen-
responsibility for
dencies, or relationships, in the release package.
the good of your company. Never forget that! Refuse to be
rushed into opening an account – even if you have the head
of sales breathing down your neck. Be diligent and thorough,
ensure that everyone follows the procedures, and don’t agree
to credit account facilities until you’re 100 per cent sure. You
Practices
CHAPTER 2won’t for Deployment
totally avoid badAutomation
debts, butand Release
you’ll most of them!17
Management
avoid
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36 Understanding
Whereas Credit Risk configuration
code and For Dummies, Graydon Special Edition
defects increase risks lin-
early as batch sizes increase, complexity defects increase risks
quadratically.
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
IN THIS CHAPTER
3
of new accounts or changes in directors. Using that system
can let you know if the credit limit you set for a customer six
Application Deployment
Loop in Line Management
Automation and Release
Don’t keep that new information you’ve collected all to your-
self! Liaise with your boss and other senior management and
keep them apprised about the company’s clients. Voice your
Management Adoption
concerns. No one likes nasty surprises! Here’s your chance to
become a hero – or at least to say, ‘I told you so!’
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36
Understanding and
Understanding Credit Risk For Preparing
Dummies, Graydon Special Edition
for Changes
Monitor Customers with a CIP
Before you begin to look for a solution, remember the goals of
Top‐notch credit
deployment information
automation providers
and release have monitoring
management solution sys-
from
tems
the for clients’
business use. Many
perspective: credit
Speed timeinformation providers
to market with have
less risk and
a monitoring
cost — system
increasing that automatically
the frequency of softwarealters a rating
delivery (either
with increased
up or down)
end-user based onreduced
satisfaction, an eventtimechange – perhaps
to feedback, the filing
reduced manual
of new
labor, accounts
and or changes
fewer errors in directors.
with higher Usingrecall
quality. Also, that the
system
goal of
can let you automation
deployment know if the andcredit limit management
release you set for a customer six
solutions from
months ago is still relevant. If your credit information
the technical perspective: Achieve repeatable, reliable, auditable pro-
vider doesn’t
processes — have a amonitoring
defining consistent system
process in
to place,
be used shop around
by multiple
for a new one! And if you don’t have a credit information
people or teams, executed repeatedly with very few (or no) errors,
provider, get one!
implementing well defined quality and user controls. Achieving
both business and technical goals requires acknowledging the
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding
Try to findCredit Risk For
an internal Dummies,
(ideally, Graydon
executive) Specialwho
champion Edition
sees the
benefits associated with the change. He or she can present the
business objectives and share how the entire team contributes to
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding Credit
where. Due Risk
to the For Dummies,
complexity Graydon
of today’s Special Edition
applications, these solu-
tions are essential in achieving continuous delivery.
Monitor Customers
Supporting with a CIP
current and
future technologies
Top‐notch credit information providers have monitoring sys-
When you’re
tems for looking
clients’ for a credit
use. Many deployment automation
information solution,
providers have
depending on your
a monitoring business
system goals, you should
that automatically seek
alters out a solution,
a rating (either
which not only
up or down) supports
based on andeployment
event change to –your current
perhaps the environ-
filing
ments
of newbut also hasor
accounts the following
changes capabilities:
in directors. Using that system
can let you know if the credit limit you set for a customer six
»» Reuses
months agodeployment
is still relevant. If your
processes credit
across information pro-
environments
»» Coordinates application deployments across multiple tiers
vider doesn’t have a monitoring system in place, shop around
for a new one! And if you don’t have a credit information
»» Integrates
provider, with existing technologies
get one!
»» Easily extendable to support future technologies
»» Provides role-based security and approval gates
Loop in Line Management
»» Maintains logs of all commands executed in deployments
»» Tracks
Don’t keepwhothatdeployed which version
new information of a certain
you’ve deployable
collected all to your-
self! artifact
Liaise with your
to which boss and other senior management and
target
»» Deploys infrastructure, middleware, database, networking
keep them apprised about the company’s clients. Voice your
concerns. No one likes nasty surprises! Here’s your chance to
and storage configurations (Infrastructure as Code)
become a hero – or at least to say, ‘I told you so!’
Prioritize the features that your organization needs most to
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36 Understanding Credit Risk For Dummies, Graydon Special Edition
SUCCESSFUL DEPLOYMENT WITH
IBM URBANCODE DEPLOY
Monitor Customers with a CIP
A financial organization was developing a new trading platform to
Top‐notch
serve credit information
as the lifeblood providers
of the organization. have monitoring
The development team sys-
tems for clients’ use. Many credit information providers
used Agile development practices to produce results faster, but the
have
a monitoring system that automatically alters a rating (either
process of deploying applications across hundreds of servers con-
up or down) based on an event change – perhaps the filing
sisted of a mostly manual operation with customization required for
of new accounts or changes in directors. Using that system
each application. Introducing Agile development practices actually
can let you know if the credit limit you set for a customer six
caused changes to build up for the operations team, whose deploy-
months ago is still relevant. If your credit information pro-
ment
viderprocess
doesn’t wasn’t
haveequipped to handle
a monitoring frequent
system in changes. This prob-
place, shop around
lem
for eventually
a new one! brought
And ifdevelopment to a halt.
you don’t have a credit information
provider,
The financialget one! still wanted to achieve the benefits of Agile
institution
development methodologies. After carefully evaluating numerous
• Don’t
Deployment times
keep that newwent from three days
information to two
you’ve hours. all to your-
collected
• self!
TheLiaise with your
organization savedboss
moreand
thanother senior
$2 million management
in the and
first year alone
keep them apprised
by eliminating the costabout the company’s
of manual deployments.clients. Voice your
concerns. No one likes nasty surprises! Here’s your chance to
• become
The organization achieved compliance and gave teams a self-
a hero – or at least to say, ‘I told you so!’
service option for deploying applications.
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36
Selecting the
Understanding Right
Credit Risk ForRelease
Dummies, Graydon Special Edition
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 »» Sequence
Understanding and
Credit coordinate
Risk automated
For Dummies, activities
Graydon and manual
Special Edition
activities in the release workflow, all relationships among
activities, and all related communications to people and
Monitor
»»
Customers with a CIP
automated systems
Automatically promote applications that meet the entrance
criteria of
Top‐notch lowerinformation
credit environments providers have monitoring sys-
tems for clients’ use. Many credit information providers have
a monitoring
Although doingsystem
so isn’tthat automatically
necessary, alters atorating
it’s advisable use a (either
deploy-
up orautomation
ment down) based on anwith
solution event
yourchange
release– management
perhaps the solution.
filing
of new
Just accounts orrelease
as application changes
andindeployment
directors. Using thatoften
solutions system work
can let you know if the credit limit you set for a
together toward the same goal, release management and deploy- customer six
months
ment ago is still
automation relevant.
solutions If your
often work credit information
together pro- an
to help build
vider doesn’t
automated havepipeline.
delivery a monitoring
Releasesystem in place,solutions
management shop aroundinte-
for a with
grate new deployment
one! And if you don’t have
automation a credit
solutions information
to kick off automated
provider, getofone!
deployments multiple applications during release time.
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding Credit Risk For Dummies, Graydon Special Edition
SUCCESSFUL RELEASES WITH
IBM URBANCODE RELEASE
Monitor Customers with a CIP
A not-for-profit organization was spending far too much time plan-
Top‐notch
ning credit information
and coordinating releases. Teamproviders
membershave monitoring
were using spread- sys-
tems for clients’ use. Many credit information providers
sheets to track release activities and meeting multiple times to review
have
a monitoring system that automatically alters a rating (either
the plans and changes in plans. The organization wanted to achieve
up or down) based on an event change – perhaps the filing
better visibility into release efforts and to cut down on meeting time
of new accounts or changes in directors. Using that system
during the release process. It eventually selected IBM UrbanCode
can let you know if the credit limit you set for a customer six
Release, the first solution designed specifically for complex applica-
months ago is still relevant. If your credit information pro-
tion releases.
vider doesn’t IBMhave
UrbanCode Release enabled
a monitoring system the organization
in place, shopto around
reduce release
for a new one!meetings
And if by
you50don’t
percent, reduce
have the length
a credit of each
information
meeting
provider,by 50
getpercent,
one! and add visibility to the entire release. By the
end of their second release with the solution, team members had a
good release template in place. By the end of the third run, the team
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
IN THIS CHAPTER
4
of new accounts or changes in directors. Using that system
can let you know if the credit limit you set for a customer six
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding Credit Risk For Dummies, Graydon Special Edition
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36
Implementing
Understanding Creditan
Risk Application
For Dummies, Graydon Special Edition
You have to take a deep look to tell whether your project or appli-
Despite
cation is all yourfor
ready due diligence, you
automation. Idealmay still be taken
applications haveinaby a
well-
fraudster. Fraud happens all the time, and no one is
documented, repeatable deployment process. If you’re looking at immune.
aCommercial fraud isitamay
greenfield project, multi‐billion‐pound
use an application threat that
that’s shows
similar to a
no signs ofreleased
previously abating.application,
And it covers every
or its industry
existing sector, not
deployment plan
justsimply
can fast‐moving consumer
be moved goods (FMCG).
to the automation Don’tThe
solution. become
same rules
complacent. Ensure detection methods are in place
apply to an established project. If you have a manual deployment or, better
yet, utilise a credit information provider (such as Graydon
process in place and are feeling pressure to deliver faster, you can
UK
Ltd), which features a specialist fraud-detection team.
move the process to an automation solution.
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36 Understanding Credit Risk For Dummies, Graydon Special Edition
This environment will likely be smaller but should use the same
Don’t keep that new information you’ve collected all to your-
operating systems, middleware, and configurations as the pro-
self! Liaise with your boss and other senior management and
duction environment. Production resources that are unavailable
keep them apprised about the company’s clients. Voice your
to test environments should be simulated through service virtu-
concerns. No one likes nasty surprises! Here’s your chance to
alization, if possible.
become a hero – or at least to say, ‘I told you so!’
For more information on service virtualization, see Service
ADespite
production-like environment
all your due diligence, youimproves thebe
may still accuracy
taken inofbyyour
a
testing for Fraud
fraudster. both the application
happens all theand deployment
time, and no one processes.
is immune.You
Commercial
can fraudenvironments
simplify your is a multi‐billion‐pound
as you workthreat
yourthat
wayshows
back to
no signs
earlier of abating. And
environments it covers
and remove every industry
unnecessary sector, not
components.
just fast‐moving consumer goods (FMCG). Don’t become
The DevOps team
complacent. members
Ensure frommethods
detection the Operations groupor,
are in place should be
better
brought intoa credit
yet, utilise the deployment
informationprocess discussion
provider (such asvery early on.
Graydon UK
Ltd), which
Their features of
understanding a specialist
corporate fraud-detection
standards around team.
technology
and the configuration of that technology are key when building
production-like environments. The best practice is to first con-
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding
This shift Credit Risk and
in thought For Dummies,
process is Graydon Special
the essential goalEdition
of DevOps.
It forces Development to collaborate with Operations, with both
groups taking each other’s concerns into consideration through-
Don’t keep
Instead, youthat new
want to information you’vestyle
create production collected all to your-
deployment pro-
self! Liaise with your boss and other senior management
cesses, and execute them in the (simpler) development environ- and
keep first.
ment themIt’s
apprised about
better to the company’s
consider clients.
how you handle Voice
a load your
balancer
concerns. No one likes nasty surprises! Here’s your chance
and then skip those steps in early environments, then to not con-
to
become a hero – or at least to say, ‘I told you so!’
sider production concerns until you get there.
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36 Understanding Credit
Developers focusRisk For Dummies,
on testing Graydoncontributions
their individual Special Edition
and the
representative piece of the entire application that applies to their
function in the project. For this reason, developers often don’t
Implementing a Release
Loop in Line
Management Management
Solution
Don’t keep that new information you’ve collected all to your-
Release management
self! Liaise with yourisboss
idealand
for other
organizations that release mul-
senior management and
keepapplications
tiple them apprised about
at the samethe company’s
time clients.
or that desire Voice
more your
visibility
concerns.
into No one
a complex likesprocess.
release nasty surprises! Here’sinyour
As we mention chanceyou
Chapter 3, to
become
can use a arelease
hero –management
or at least tosolution
say, ‘I told you
with or so!’
without deploy-
ment automation solutions.
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding
The key toCredit Risk For
this concept is Dummies, Graydon
scale. You want Special
to begin withEdition
the small-
est logical model of a typical release process. You should use a
release that, though small, will be useful in scaling up to future
»» Use
Don’t keep
thethat
self! process.
newnew
Liaise with
information
solution you’ve
in parallel collected
with the existingall to your-
The first path is to use the solution management
your boss and other senior in parallel with and
keepan them apprised about the company’s clients. Voice your
existing release process. This path enables the release
concerns. No one likes nasty surprises! Here’s your chance to
team to map an existing process to the process in the
become a hero – or at least to say, ‘I told you so!’
release solution while they’re both running. In practice, this
means conducting a release in the legacy fashion while
Stick to Your Guns ment solution. Much like running the solution parallel to a
release in progress, this practice gives the team a before-
As aand-after picture of the process and a safe way to use the
credit professional, you hold a great responsibility for
solution for
the good of your thecompany.
first time. Never forget that! Refuse to be
rushed into opening an account – even if you have the head
of sales breathing down your neck. Be diligent and thorough,
ensure that everyone follows the procedures, and don’t agree
to credit account facilities until you’re 100 per cent sure. You
CHAPTER
won’t totally avoid bad debts, 4 Rolling
but you’ll Outmost
avoid Solutions 33
of them!
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36 The first
Understanding twoRisk
Credit pathsFor
areDummies,
exercises that provide
Graydon realisticEdition
Special use
cases for the solution and give team members a chance to
realign their expectations and interactions.
Monitor
»» Customers with a CIP
Dive into the deep end. The third path, which is less
conservative than the first two paths, is to dive into the deep
end andcredit
Top‐notch simplyinformation
use the new solution
providers for have
a live release.
monitoringYou sys-
temsshould set up use.
for clients’ your Many
teams for success
credit by choosing
information a small have
providers
release that
a monitoring you know
system thatthey can execute with
automatically altersthea solution.
rating (either
Take
up or the selected
down) based on release downchange
an event to its minimum
– perhapsrepresenta-
the filing
of new
tiveaccounts or changes
state of complexity andin directors.
give it to yourUsing
team as that system
a low-risk
can let
liveyou
first know
use of if
thethe credit limit you set for a customer six
solution.
months ago is still relevant. If your credit information pro-
vider doesn’t have a monitoring system in place, shop around
for a new one! And if you don’t have a credit information
provider, get one!
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IN THIS CHAPTER
5
of new accounts or changes in directors. Using that system
can let you know if the credit limit you set for a customer six
Application Release
Loop in Line Management
and Deployment
Don’t keep that new information you’ve collected all to your-
self! Liaise with your boss and other senior management and
keep them apprised about the company’s clients. Voice your
concerns. No one likes nasty surprises! Here’s your chance to
become a hero – or at least to say, ‘I told you so!’
S
ometimes, the best way to understand what’s true about a
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding Credit
unavailable Risk
to kick offFor
theDummies,
script (or Graydon Special
is no longer Edition
employed by the
organization when a change is ready to advance), the team can
miss deadlines or miss the step entirely. In addition, if the SME is
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36
Complex Releases
Understanding Can
Credit Risk For Be Graydon
Dummies, EasilySpecial
Managed
Edition
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding Credit
Controls are Risk
also For Dummies,
improved. Graydon Special
The deployment buttonEdition
is behind
role-based security, and approval and quality-gate rules can be
enforced automatically. When you have a full audit trail showing
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36
One Large Release
Understanding IsDummies,
Credit Risk For Less Graydon
RiskySpecial Edition
Than Several Small Ones
Monitor Customers with a CIP
In fact, large releases carry increasingly higher risk with the num-
Top‐notch
ber credit information
of interdependencies providers
included have frequent
than small, monitoring sys-
releases
tems
do. for streamline
If you clients’ use. Many
the credit
release andinformation
deployment providers
process by have
using
a monitoring
automation system you
solutions, thatfree
automatically
your peoplealters a rating
to improve the(either
process
up orand
itself down) based
enable the on an event change
organization – perhaps
to get feedback the the
from filing
end-
of new
user accounts
faster insteadorof changes in directors.
experiencing the delays Using that system
associated to having
can
to let youhighly
perform knowrepetitive
if the credit limit tasks.
manual you set for a customer six
months ago is still relevant. If your credit information pro-
vider doesn’t
Smaller have
releases a monitoring
have system
fewer pieces in place,
and fewer shop around
independencies.
for a new
Errors one! by
caused Andmisunderstanding
if you don’t have aorcredit information
poorly accounting for
provider, get one!
interdependency are dramatically reduced in a smaller release.
You usually can achieve the required minimum state with the
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding Credit
is to create Risk For
working Dummies,
builds that areGraydon Special
versioned Editionto
and ready
deployed through a number of testing stages onto production.
be
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding Creditshifting
and potentially Risk Forresponsibilities.
Dummies, Graydon Specialprepare
You should Editionyour
teams for the shift, expect resistance, empower them to make
decisions, and remain aware of what works and what doesn’t
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Understanding Credit Risk For Dummies, Graydon Special Edition
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Notes
Understanding Credit Risk For Dummies, Graydon Special Edition
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
36 Notes
Understanding Credit Risk For Dummies, Graydon Special Edition
These materials are © 2017 John Wiley & Sons, Inc. Any dissemination, distribution, or unauthorized use is strictly prohibited.
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