Practical example
Establishment of a Risk Monitoring System for Extended Warranties
Analysis, design, and development of a proof-of-concept (PoC) tool for the future risk monitoring of warranty extensions
Background
Our client, a leading provider in the commercial vehicle sector, faced the challenge of implementing an efficient and manageable risk monitoring system for warranty extensions. Until then, there had been no standardized methodology for continuously monitoring and forecasting (cost) risks associated with warranty extensions.
Specific task
The primary objective was to develop a framework for monitoring the risks associated with warranty extensions. This involved defining key performance indicators (KPIs) and implementing them in a business intelligence application as part of a proof of concept (PoC).
KBC's Approach
The first challenge was the lack of a methodology for monitoring and forecasting risks. To address this, KBC developed a standardized assessment model for cost risks. This model enabled forecasting across all relevant levels, from countries and markets down to vehicle series and contract types.
The second challenge was the lack of transparency regarding existing data. KBC designed a tool—specifically a dashboard—for continuous risk monitoring and implemented a proof of concept (PoC) in Tableau.
