Today’s investment banks face the challenges of complying with regulatory requirements of Basel III and the Dodd-Frank Act. Accenture believes that banks can achieve both these aims with a sound data management strategy—one that gives banks the ordered, accurate, consistent and timely data that they need to comply with regulations, as well as create a competitive advantage.
Data governance 101
At its heart, data governance is a set of processes that enables a business to make the most of the data that it holds across the enterprise. An effective data governance model involves all stakeholders, specifically both business and technical personnel. Having a robust data governance model can yield access to consistent, accurate and appropriate data. It creates the flexibility to meet the demands of both new and changing regulatory environments, and offers senior management the ability to accurately assess risk across the enterprise.
Designing a data governance strategy
Put simply, financial institutions need data to be available when and where it’s needed to meet the business objectives of the company. This requires a data hierarchy and organizational structure—one that takes into account the objectives of senior management (such as methodology for risk calculations and other analytics) and meets regulatory requirements.
An effective, strategic data governance strategy needs:
- Internal acceptance among stakeholders, on both business and technical sides.
- An operating model that accounts for organizational structure, IT infrastructure and business needs.
- Empowered people who can make decisions and assign responsibilities.
- Highly targeted projects that yield quick wins and establish standard procedures.
An enterprise data governance model does not have to be difficult, and it doesn’t have to be prohibitively expensive. There are quick wins to be had, and long-term benefits for investment banks that are willing to develop a robust data governance strategy.
To learn more, download A Model for Data Governance: Does Your Organization Really Have One? (pdf; opens in a new window).