About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

A Strategic Approach to BCBS 239 Implements Best Practice Data Management and Promises Business Benefits

Subscribe to our newsletter

BCBS 239 compliance is a challenge and its January 1, 2016 deadline for global systemically important banks is fast approaching, but successful implementation of the regulation’s principles, particularly those covering risk data aggregation, can deliver significant business opportunities. These include cost and capital savings, data rationalisation, improved data quality and links between datasets that have not previously been made in IT infrastructure and could be beneficial to business.

With compliance so close, A-Team Group will address the problems and potential of BCBS 239 during a panel discussion at next week’s New York Data Management Summit. Giving us a brief insight into some of the issues that are likely to be covered during the discussion are panel members Maryann Houglet, consulting partner, information strategy and architecture, Tata Consulting Services Global Consultancy Practice; Jeffrey Shortis, cofounder and CEO, Data3Sixty; and Neill Vanlint, managing director, global sales and client operations, GoldenSource.

Houglet notes the extent of the regulation and notes the need for banks to understand its reach across not only data, data management and architecture, but also across people, business processes and technologies. She recommends making a roadmap to compliance that encompasses all the elements touched by the regulation and establishing a top-down data strategy geared to the business, its risk profile and priority issues. This top down approach meets a bottom-up plan to tackle components such as data lineage and profiling that must play into the data strategy.

She explains: “The initial need is to consider the current state of how risk data is managed across the bank and create a framework that splits up tasks that must be tackled to achieve a bank level view of risk. A risk data architecture needs to be designed as part of the strategic approach. It needs to enable data to be decoupled from applications that use different taxonomies and support risk in different ways. Standards for data and ontologies also need to be established and, from a people perspective, there needs to be cultural change.”

Data3Sixty provides a data governance solution that can support the automation of data governance policies and processes that underpin BCBS 239 compliance. Like Houglet, Shortis promotes a strategic approach to the regulation and suggests a framework for governance policies necessary to compliance. He comments: “Industrial strength processes, rather than point solutions and manual intervention, are needed for effective operations around governance policies covering issues such as data ownership, definitions, monitoring and exception management.”

Taking a macro view of the regulation, Vanlint says it is not just a compliance initiative, but regulatory guidance for best practice data management and an opportunity to understand and validate data that is relevant to the bank. He says: “BCBS 239 gives banks quite a lot of flexibility in how they comply, but they must be able to explain how they do this. For some banks this is an opportunity to centralise data and for all banks that implement the regulation successfully there should be business benefits such as cost savings, improved data quality, and a better understanding of the business and how data can be used to advantage.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: The roles of cloud and managed services in optimising enterprise data management

Cloud and managed services go hand-in-hand when it comes to modern enterprise data management (EDM), but how can the best solutions for the business be selected and implemented to ensure optimal data management based on accurate, consistent, and high-quality data, and delivering improved efficiency, better decisions and competitive advantage? This webinar will answer these questions,...

BLOG

Bloomberg Escalates Collaboration to Extend Customer Access to Cloud Data

Bloomberg continues to invest in the cloud and meet its mission of providing efficient access to data in the cloud through a collaboration with Databricks, a data and AI company, that allows mutual customers to access Bloomberg’s data offerings using Data License and its cloud-based data management solution Data License Plus (DL+). Databricks, Google Cloud...

EVENT

Buy AND Build: The Future of Capital Markets Technology, London

Buy AND Build: The Future of Capital Markets Technology London on September 19th at Marriott Hotel Canary Wharf London examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Corporate Actions 2009 Edition

Rather than detracting attention away from corporate actions automation projects, the financial crisis appears to have accentuated the importance of the vital nature of this data. Financial institutions are more aware than ever before of the impact that inaccurate corporate actions data has on their bottom lines as a result of the increased focus on...