This tutorial guides users through creating a Power BI dashboard tailored for risk management professionals. The dashboard focuses on visualizing the capital adequacy ratio (CAR), a crucial metric calculated by dividing total capital (Tier 1 + Tier 2) by total risk-weighted assets. The explanation clarifies what constitutes risk-weighted assets, providing examples like cash (0% risk weight) versus unsecured loans (100% risk weight), and emphasizes their importance in ensuring financial institutions can absorb potential losses.
The tutorial then demonstrates the practical steps in Power BI, starting with data import and the creation of a “total capital” column. It moves on to building various visuals, including card visuals to display the latest CAR, total risk-weighted assets, and total capital values. Line charts track CAR and risk-weighted assets over time, while bar charts illustrate the composition of total capital and different types of risk-weighted assets (credit, operational, market). Finally, pie charts provide a compositional view of capital and risk-weighted assets for the latest year, culminating in a complete and visually appealing risk management dashboard.
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