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30 Jun 2008

dn:Director for Basel II Compliance

Accurate Risk Modeling

Basel II requires financial institutions to put appropriate models and controls in place to measure and manage risk, but the quality of the data used in any model is critical to its performance.

Poor quality data increases your costs and leads to poor decision-making and inadequate or delinquent compliance.

The kind of questions you ought to be asking of your source data are: is the sample complete? Is it appropriateness? Is it accurate?

Basel II Compliance with Datanomic

Any institution wishing to take an IRB (Internal Ratings Based) approach to Basel II has to be confident - not only in its models, but also in the quality of its data.

dn:Director lets you discover the problems in your customer or compliance data and take action to correct them; across all databases, regardless of vendor, from one simple, central dashboard.

For example, dn:Director uses a variety of simple, flexible, user-defined rules that enable you to:

• Report on the distribution of your data sets so that you can compare historical analyses for their correctness
• Look at distributions of Loan To Value (LTV) ratios across a portfolio to find inappropriate cases that merit further investigation.
• Highlight different data population rules or separate IRB from standardized data

You can view all of your analysis work via dn:Director’s easy to use, web-based reporting dashboard, which can also be shared with your internal and external colleagues. (Alternatively, you can export to Microsoft Excel and share it this way.)

dn:Dashboard also provides a variety of tools to help ensure your compliance. In it you can incorporate your organization’s own data quality targets and thresholds and assign RAG (Red, Amber Green) status to individual line items.

dn:Director is used by MLROs and Risk Managers in some of the world’s leading financial institutions to…

• Assess the completeness, appropriateness and accuracy of the data used in their IRB models.
• Define scope the of data tests, priority of data items, targets and thresholds and tune the business rules for their organization.
• Determine statistically valid sample sizes, sampling techniques and testing processes to guarantee accuracy.
• Provide ongoing monitoring by testing the data sets on a daily, weekly or monthly basis.
• Produce reports and dashboards to keep senior management informed of all KPIs.

dn:Director is fast and simple to use. Unlike other solutions, you get to use it from day one. At a recent implementation for a large UK Bank, the data quality team were able to produce completeness KPIs and some simple appropriateness KPIs within two hours of the software being installed. Find out more about the market’s leading Data Quality solution today…