A strong infrastructure of quality, integrated data and sound analytics provides a sound foundation for more effective risk management. But success ultimately depends on the ability of a firm’s employees to manage risk appropriately in their daily business decisions. Banks and financial services firms should consider evaluating possible data quality and integration issues in the following areas:
Customer data. Is it housed in multiple systems without a unique identifier?
Legal entity data. Determine the extent of replication. Is the data maintained in multiple systems with inconsistent legal entity relationship constructs?
Product codes. Is the data standardized across systems and defined with distinct hierarchies?
Contract data.Is it consistently captured and centrally stored?
Position data. How much manual scoring and mapping is required? Can you reconcile between the risk and finance data?
Transaction-level data. Is the transaction data tied to its requisite summary data? Or is analysis of anomalies a manual, difficult task?
You can dig deeper into this topic by downloading the white paper Risk Management Begins With the Data. This is also a great place to ask questions and chat about data and risk management.