Improving reliability of Basel risk data reduces compliance overhead
Cambridge, UK – 24 May 2010 – By using automated data review and improvement tools prior to Basel II risk calculation and reporting, financial services firms can dramatically reduce the costly manual overheads involved in achieving Basel compliance, according to data management specialists, Datanomic. Ensuring the accuracy and reliability of the data underpinning Basel risk calculations – and thereby protecting against errors or misreporting – means financial services firms can achieve faster and more accurate Basel compliance.
In the wake of the Basel Committee on Banking Regulation’s decision to support tough new rules requiring banks to set aside funds in the event of future crises, which could cut world economic growth by up to one percentage point, the financial services industry is under increasing pressure to find efficient yet effective ways of complying with further reform to minimise the operational overheads required to demonstrate compliance.
“At a time when banks are lumbered with significant repayments of recovery cash and are under pressure to regain stability and start re-lending to business, significant costs associated with a risk management process might encourage them not to lend to minimise their risk, or to ignore the legislation and hope for leniency – neither of which serves the industry well as a whole,” said Jeremy Lovett, Vice President Data Management Applications for Datanomic. “Much of the manual effort involved in aggregating and assessing the fitness-for-purpose of the data used for Basel calculation and reporting can be removed, keeping compliance costs to a minimum and reducing the operational impact on the business. Firms should be looking to automate these procedures to reduce both their risk exposure and administrative costs in complying with Basel reform.”
dn:Director from Datanomic is an enterprise-wide data management solution that is widely proven in the field of regulatory compliance, most notably as the UK Financial Services industry’s de facto standard for Risk & Compliance Screening. By utilising dn:Director’s automated data review and remediation procedures, which are highly configurable to match an individual organisation’s risk appetite, firms are able to significantly reduce the amount of manual effort involved in preparing and checking risk data as part of an enterprise compliance program such as Basel II.
Datanomic is offering selected financial services firms a free 90-minute onsite ‘QuickStats Workshop’ to assess the accuracy and reliability of the data underpinning Basel risk calculations. Companies interested in participating can find out more at http://www.datanomic.com/quickstats
About Datanomic
Datanomic’s flagship enterprise Compliance Screening and Data Management software, dn:Director, helps organizations remain compliant with legislation, save money, streamline business processes, reduce waste and seize more opportunities. dn:Director’s broad capabilities enable organizations to identify and eradicate problems in customer, financial and product data, improve compliance performance and better manage business risk. Headquartered in Cambridge, UK, with an office in New York, USA, Datanomic was founded in 2001 and is backed by DN Capital. www.datanomic.com
For further information, please contact:
Jeremy Jones
Datanomic Ltd
Tel: +44 (0) 1223 228418
Email: jeremy.jones@datanomic.com
Vanessa Land
Devonshire Marketing (PR for Datanomic)
Tel: + 44 (0)870 242 7469
Email: vanessa@devonshiremarketing.com