Financial services organisations must have ability to forensically analyse underlying data to reveal hidden risks in multiple systems, says Datanomic
Financial services organisations must update the way they validate underlying core data to mitigate risks hidden in the multiple data silos across their systems, according to compliance and data management specialists, Datanomic. As the Bank for International Settlements gathered top central bankers and financiers for a meeting in Basel last month amid rising concern about a resurgence of the “excessive risk-taking” that sparked the financial crisis, there is a need for greater focus on existing data reporting techniques.
With Loan-to-Value calculations, Basel II, Solvency II, Liquidity Risk Management and pensions information all directly reliant on data held in an organisation’s systems, major risk factors are being overlooked as a result of underlying core data not being properly validated.
“Financial services organisations are being confronted with new reporting challenges,” said international risk management expert, Mike Hamm. “New regulations mean organisations must assess cash flow and liquidity on a daily basis and have the ability to report on it. It is imperative that this data is accurate, consistent, reliable, and accessible if companies are to gain a true understanding of what’s happening on an enterprise-wide basis. It also means they must automate this process as the latency time is much shorter. It’s an enormous challenge and it is simply unrealistic to rely on manual efforts to access, validate and analyse disparate data sources and then stress test it within such a short time frame. Organisations must be able to get to the granular level, and gain a holistic view on what is happening across the entire organisation or they are operating blind.”
Jeremy Lovett, Vice President, Data Management Applications Division for Datanomic, added, “Financial services organisations have been taking the same approach to data reporting for the past ten years, yet systems and reporting requirements have changed dramatically. It is imperative to be able to forensically analyse data, and have the ability to validate the underlying data itself – not just at the software application level. Clustering and fuzzy matching techniques enable organisations to gain better insight into data at a granular level, and the associated risks and information hidden in their systems. By taking a forensic approach to data analysis, in a 90 minute QuickStats Workshop using our dn:Director application, we can work with organisations to see where and why the problems in data are occurring.”
Usually, the tools applied to validate and verify underlying core data are typically technical in nature and aimed exclusively at IT-literate personnel. However, the dn:Director software facilitates a business application view of the problem, enabling companies to collaborate and interrogate their data at the business level. Barclays is one example of a major high street bank that has already adopted dn:Director to assist its risk mitigation and compliance reporting efforts.
To find out more about Datanomic’s forensic approach to data validation, or to discuss setting up a free onsite 90 minute QuickStats Workshop visit http://www.datanomic.com/solutions/business-improvement/quickstats-workshop/.
About Datanomic
Datanomic’s flagship enterprise Data Management and Compliance Screening software, dn:Director, helps organisations save money, remain compliant with legislation, streamline business processes, reduce waste and seize more opportunities. The core foundation of all Datanomic’s business solutions, dn:Director’s broad capabilities enable organisations to identify and eradicate problems in customer, financial and product data, improve compliance performance, and better manage business risk. dn:Director allows teams to collaborate on business-critical data issues, across any database, via a central console. Based in Cambridge, UK, with a flagship office in New York, Datanomic was founded in 2001. 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