Data management as a control function has gained a strong and sustainable foothold in the financial industry. It has been propelled forward by the regulatory requirements associated with linked risk analysis, stress testing and transparency. Beyond regulation, data is also understood as an underlying factor of input into business operations and essential in order to facilitate process automation, support financial engineering and enhance analytical capabilities.
There is no question about it – the foundational levels of governance required to establish data management on a sustainable basis are coming together. Data executives have been hired and given the authority they need to drive these initiatives forward. The financial industry is now standing at the precipice of turning that “data management commitment” into action. Many firms are in the midst of writing internal policies and standards needed to embed data management into the fabric of their organizational operations.
The good news from the benchmarking study is that we are overcoming the organizational barriers required to enable data management as a sustainable activity.
The more challenging news stems from the fact that the scope of the task is significant. Financial institutions are complex organizations who are forced to deal with the intricacies of financial engineering, the need to unwind technical legacy and the pressures of volatile global business environments. We are still working to untie the “Gordian knot” and dedicating resources to unraveling lineage, inventorying content, identifying critical data, adopting standards and mapping systems.
Harmonization of meaning across thousands of repositories and implementing control processes needed to ensure trust in data resources remain as daunting challenges. This is a watershed moment but there is no getting around the inherent difficulties associated with either altering organizational behavior or managing wholescale transformation of the data content infrastructure. And while the challenges are real, the global financial industry has clearly taken a giant step closer to achieving a data management control environment.
Congratulations on your progress!