Managing Risk special report
Click here to download the PDF
Technique or Technology?
The importance of certain data management functions for competent risk management is increasingly evident in the securities industry. Data modeling, data governance and data quality monitoring are among the tasks of concern, as Michael McMorrow of Allied Irish Bank relates in the this issue's Virtual Roundtable.
The biggest challenge, however, to hear professionals tell it in the Roundtable, and in this report's Q&A with Tower Group's Rodney Nelsestuen, is getting that quality data, and making sure data is complete. To obtain that completeness, firms must tie issuer-level risk attributes to specific issued securities, says Ludwig D'Angelo of JPMorgan Chase. But can data quality be had by double or triple sourcing reference data? D'Angelo believes that's not worth the risk of bad data this presents because of varied standards for data quality. He suggests rating vendors as one way to proactively manage data quality.
Securities industry data has a lot of attributes or fields, and increased granularity, observes Sybase's Sinan Baskan in the Roundtable. As a result, providers and consumers have to address volume, workload and timeliness issues in data management, to make critical risk decisions, he explains. To accomplish this, the industry has less and less time, Baskan adds, and the penalties for bad data in risk accounting are becoming steeper-both compliance-wise and business-wise.
So what can a data manager do? Aside from improving tools and operations, the risk management unit of a firm should include a data management team, says Baskan. Nelsestuen says that firms with the best practices are the ones with dedicated data teams. Getting quality data requires a quality data management staff. Technology and tools may only go so far.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
$135.6m fines prompt Citi to modernize infrastructure, controls
The bank was hit with a combined $135.6 million fine on Wednesday for failing to resolve “longstanding internal controls and risk issues,” amid continued internal work across the enterprise.
SocGen pushes data, analytics use cases for SG Markets
The bank is letting a handful of clients experiment with its proprietary data and models to inform their research.
Finra clears hurdle with CAT launch, but several others remain
Two major components of the consolidated audit trail are now in place. But wrangling over the CAT’s future continues.
Ace high or busted flush? Digital Asset’s mixed fortunes mirror DLT adversity
The vendor hoped to remodel post-trade using blockchain technology—and it still might—but its bumpy progress raises questions over the future of DLT in finance.
The IMD Wrap: It’s the data, Cupid!
As BlackRock buys Preqin, and LSEG strikes a data deal with Dow Jones, Max notes that in data, strange bedfellows breed valuable offspring.
This Week: BlackRock/Preqin, Trading Technologies, FIA Tech and more
A summary of some of the past week’s financial technology news.
US banks seek to open vendors’ black box on green data
Inaugural Fed climate scenario analysis flags lack of transparency around third-party models.
IEX Cloud closure forces fintech clients to seek data alternatives
IEX says it is ditching its unprofitable data arm to focus on its core exchange business, but other vendors believe they can turn a profit from its former client base of fintechs, retail investors and some institutions.