Exec Summary:

Excel is the backbone of countless business processes, but it comes with many risks. DataBooth enhances your existing Excel environment without disrupting your current workflows. By offering on-premise deployment, observability, and automated smart risk assessments, we empower your organisation to uncover sensitive data, minimise compliance risks, and gradually adopt better practices at your own pace. Maintain flexibility while gaining control, clarity and comfort.

From Wild West to Governed Frontier

Microsoft Excel is now 40 years old, there have been 18 major versions of Excel, starting with version 1.0 for the Macintosh! It’s the backbone of countless business processes, from budgeting and forecasting to data analysis, reporting, and complex modelling and valuations. However, behind the apparent order lies hidden (although well-documented) operational risks.

While new web-based "Excel-like" tools such as Quadratic, Google Sheets, PySheets and others offer enhanced governance and collaboration features, they only address a fraction of the problem. These tools likely represent the future of spreadsheet development but don't solve the existing challenge - well not any time soon.

While Office 365 enables easier sharing and real-time collaboration, it doesn't inherently address the challenges of change tracking, version control, and data integrity, especially for organisations reliant on existing Excel workbooks. If you're considering a migration to a new system, the solution assesses the risks tied to these workbooks, ensuring a smoother transition with fewer potential errors.

The reality is that most companies are still relying on a mountain of Excel workbooks – often hundreds, if not thousands – that are both poorly governed and lacking documentation, version control, potentially contain PII data, etc and the list goes on. Excel-leakage via email has been largely locked down in larger organisations, yet the inherent risks within the uncontrolled Excel ecosystem remain.

If your organisation's "citizen developers" push Excel to (or past) its limits and yet you don’t fully understand the landscape, read on...

The Unseen Risks of Excel Reliance

Excel, a stalwart in data handling, is also a breeding ground for risks due to its unmonitored use:

• Shadow IT and Lack of Governance: Excel's accessibility leads to widespread use without IT oversight, causing compliance breaches and data governance problems.
• Version Control Chaos: Without version control, managing multiple workbook versions becomes a nightmare, increasing errors.
• Data Security Concerns: Workbooks may house sensitive information like PII, vulnerable to leaks and compliance failures.
• Operational Glitches: Erroneous formulas, undisciplined VBA, add-ins or custom code can cause significant miscalculations, affecting decision-making. With the Python integration in Excel, this risk is only increasing.
• Lack of Documentation: Many workbooks lack proper documentation, making it difficult to understand their purpose and functionality.
• Inconsistent Data Standards: Different teams may use varying data formats and standards, leading to inconsistencies and errors.
• Poor Change Management: Changes to workbooks often go undocumented, making it hard to track modifications and their impact.
• Model Risk Management Gaps: Many organisations lack a formal model risk management framework, leading to ungoverned and potentially flawed models.
• Regulatory Compliance Risks: Failure to comply with industry-specific or regional regulations can lead to significant penalties or, more likely, reputational damage. For example, as discussed in this article, these risks are becoming increasingly pertinent in the broader context of AI governance and necessitate careful consideration.
• Data Breaches: Sensitive data in workbooks can be exposed, leading to compliance violations and reputational damage.
• Operational Bottlenecks: Manual processes in Excel can create bottlenecks, slowing down decision-making and increasing the risk of errors.
• Inconsistent Reporting: Different teams may use different versions of the same workbook, leading to inconsistent reporting and decision-making.
• Audit Deficiencies: Lack of tracking makes auditing changes in workbooks challenging.
• Model Integrity: In custom models, undocumented assumptions and errors can lead to incorrect results.
• Knowledge Silos: Critical knowledge trapped in workbooks makes teams dependent on individuals.
• Data Consistency Issues: Lack of central rules can cause data discrepancies, undermining reporting accuracy.
• Manual Processes and Errors: Manual Excel processes can lead to operational bottlenecks and errors.

It's a long list and many of these risks are well understood - though not actively quantified or managed!

The Stakes Are High: Quantifying Excel Risk

The cost of Excel errors is more than just minor inconvenience. Publicly available studies of spreadsheet errors have found that over 90% contained errors, with many large companies experiencing financial losses as a result.

• Financial Impact: Miscalculations from erroneous formulas lead to poor decisions.
• Reputational Damage: Data breaches and compliance failures can harm brand reputation.
• Strategic Misalignment: Poor data quality can affect strategic plans, leading to misguided decisions.

This is where the DataBooth solution comes in.

Reclaiming Control: Introducing the DataBooth Solution

At DataBooth, we understand the critical role Excel plays in your organisation. We also recognise the inherent risks of an unmanaged Excel environment. That’s why we’ve developed a solution that brings flexibility, observability, security, and governance to your existing Excel world.

Our approach is designed to work with your Excel ecosystem as it is today. We don’t force you into a rigid structure or require a complete overhaul of your existing workflows. Instead, we provide:

• Secure, On-Premise/Private Infrastructure: Your workbook data never leaves the security of your environment. Our solution is deployed on your infrastructure, ensuring compliance with your data residency and security policies.
• Web UI Observability Interface: Gain a clear, centralised view of your Excel landscape. Identify critical workbooks, track usage patterns, and pinpoint potential risks through an intuitive web-based interface.
• Seamless Integration: Our solution works with your existing Excel files, eliminating the need for disruptive migrations or format conversions. Optional modern versioning of workbooks which facilitates rollback of changes.
• Automated Risk Assessment: Our solution automates the discovery and assessment of Excel workbooks, providing a comprehensive risk profile for each file. This includes identifying potential errors, inconsistencies, and compliance issues. However, even with this first iteration, you know your business best and your experienced analysts should still use their SME judgement to assess the risk of each workbook, particularly for critical workbooks.
• Customisable Risk Scoring: Tailor the risk scoring system to align with your organisation's specific needs and risk appetite. This allows you to focus on the most critical workbooks and address potential issues proactively.
• User-Friendly Interface: Our solution is designed for both technical and non-technical users, making it easy to navigate and understand. The web UI provides a clear overview of your Excel landscape, allowing users to quickly identify potential risks and take action.
• Automated Reporting: Generate regular reports on spreadsheet risk, providing insights for management and regulatory compliance. This includes tracking changes, identifying trends, and demonstrating compliance with regulatory requirements.
• Proactive Monitoring: Our solution continuously monitors your Excel workbooks, alerting you to potential issues before they escalate. This includes tracking changes, identifying anomalies, and providing real-time insights into your Excel landscape.
• Customisable Workflows: Tailor the solution to fit your organisation's specific needs and processes. This includes custom workflows for risk assessment, change management, and reporting.
• Integration with Existing Tools: Our solution can integrate with your existing data infrastructure, allowing for seamless data flow and analysis. This includes integration with databases, data warehouses, and other analytics tools.
• Audit Compliance Checks/Reporting: Leverage a backend database (either provided or with links to organisation data infrastructure) to generate comprehensive audit reports, track changes, and demonstrate compliance with regulatory requirements.

Roadmap: Future-Proofing Your Excel Governance

Building upon our solid foundation, we're committed to continuous improvement and innovation, with a roadmap that includes several exciting features designed to further enhance our solution and address the evolving challenges of Excel risk management:

• PII Scanning and Reporting: Automatically identify and flag workbooks containing potential Personally Identifiable Information (PII) to mitigate data breach risks.
• Data Connection Enumeration: Enumerate existing data connections / connectors within workbooks to understand data flow and dependencies.
• VBA Code Analysis: Automatically assess the complexity and potential risks associated with VBA code within workbooks, providing insights into potential vulnerabilities and suggestions for migration paths to Python.
• Automated Workbook Versioning: Implement version control for workbooks, allowing users to track changes, revert to previous versions, and maintain a clear audit trail.
• Automated Workbook Documentation: Generate documentation for workbooks, including metadata, formulas, and dependencies, to improve understanding and governance.
• LLM Summarisation of Workbooks: Leverage the power of Large Language Models (LLMs) to automatically summarise workbook content, providing a high-level overview of its purpose and functionality that can be refined by your SMEs.
• LLM Chat with Workbook including VBA: Interact with your workbooks using natural language, asking questions about formulas, data, and VBA code to receive instant answers, streamlining spreadsheet understanding and maintenance, especially when experienced analysts leave your organisation.
• Model Risk Register Integration: Complement existing model risk registers by providing a database store of all metadata, which can be easily queried and integrated with existing model risk management processes.

Conclusion: From Risk to Resilience

Don’t let your Excel landscape remain a blind spot. With DataBooth, you can transform Excel risk into Excel resilience, ensuring the accuracy, security, and compliance of your critical business processes.

Moreover if you are considering a migration to a new version or platform, our solution can help you assess the risks associated with your existing Excel workbooks, ensuring a smooth transition and minimising the potential for errors.