The recent economic crisis provided insights that many organizations are taking to heart. During the recovery, many have put that research to work to improve risk management and governance. But the crisis affected firms in different ways, and some are just beginning the process of restructuring. SAS Senior Vice President and Chief Marketing Officer Jim Davis says that you should get the data right from the start. “Ask where you want to be in 10 years … so you don’t have to circle back and figure out data integration and data management in 2020.”
Risk management begins with data management. Integrating the fragmented data – from growth, acquisitions and outgrown models – can lead to a more effective risk management strategy. Here are some of the key benefits of data integration:
- Allows you to collect, report and monitor collateral, positions and customer information across the organization. A recent study conducted by the Economist Intelligence Unit found that only 39 percent of respondents believe that they are effective at collecting, storing and aggregating data.
- Costs are reduced because of more efficient use of data. In a Computerworld project, Information management initiatives at midsize and large organizations, a combined 55 percent of responders listed either “integrating disparate systems, standardizing data management processes, data quality or data access” as the key barrier to their information management efforts.
- Accurate data allows employment of risk-adjusted profitability management, risk-based pricing of transactions, capital management and active portfolio management.
- Regulator confidence may be improved by the more reliable and timely reporting. In another Computerworld report, 59 percent of responders named “data integration with multiple source systems” and 56 percent named “data quality” as the key technology or business challenge to business analytics implementations.