Financial services firms are under mounting pressure to manage regulatory compliance and associated risk more effectively. New requirements emerge with each new product launch, acquisition or new regulation. Consequently regulators want evidence of robust systems for data retention, aggregation and analysis.
The volume of relevant data is soaring exponentially and much of this is unstructured and unmanaged. Companies don’t know what to keep and what to throw away, so they hold onto information for too long, increasing data storage costs, and leading to duplicated data in different formats that is hard to find.
Data quality is paramount, to ensure the accuracy of information provided to internal risk and compliance managers and to external regulators. In strengthening governance, organizations should:
- clarify what data should be kept and what can be discarded: take a pragmatic approach to over-retention, legal holding requirements and duplication
- identify gaps in the data management performance of different functions: contrast existing legal, regulatory and business requirements for data alongside the people, process and technology controls
- evaluate the quality and consistency of reporting: analyze different sets of core data to establish how it helps you better understand your business.
Regulators want to be confident that institutions have a sustainable approach to data management. A data quality assurance system requires both business and technology functions to work together to achieve the following objectives:
- obtaining clarity and consistency on data definitions and data quality
- identifying data ownership, data flows and appropriate analytical tools and processes
- establishing clear processes for resolving any data quality issues.
- Reductions in data storage costs of 30-50 percent
- improved risk management
- more assurance over regulatory compliance and reduced legal exposure
- higher quality management reporting to aid strategic decision-making
- simplified data ecosystem.
Are you getting the most from your data?
- Can you quickly and easily access data for risk management and compliance purposes?
- Do you have a data lifecycle governance program?
- Do your reports give you insights that improve your strategic decision-making?
- Are you spending too much on data storage?
To discuss these questions further contact:
To read the full article, download the PDF.