Data Process Challenges
![virginie-oshea-aite virginie-oshea-aite](/sites/default/files/styles/landscape_750_463/public/import/IMG/067/207067/virginie-oshea-aite-580x358.jpg.webp?itok=pAQqFegT)
What are the most important aspects of managing risk to consider for managing data operations?
One of the main challenges is understanding where the problems are in getting data right to input into risk management calculations. Many risk managers cannot see where the data is coming from because the fields they pull information from may be filled with dummy codes.
When trying to run a new risk analytics report, the set-up is not always from the same sources. So teams sometimes have to put together workarounds to patch that data together, but inaccuracies may then go into those data fields. That's where we see a lot of process changes and challenges. The bigger challenge is understanding the data you have, where it comes from and where the problems are, because it might not be immediately obvious.
What is the best way to handle data to support risk management?
There tends to be a disparity between how you approach data and the way that data is managed. Risk calculations vary as well, so there are different focuses. It's very hard to develop best practices when there is such a lack of standardization.
In an operational and cultural sense, end-users giving input on what they want data to look like at the end of the process means you need consistency in ownership of that data.
How are stress-testing regimens and requirements affecting risk data management?
People pay lip service to BCBS 239. They're probably struggling because it's quite a big project to take on. Risk is pulled from all types of different data sets, so it's not an easy project by any stretch of the imagination. Anyone trying to do a six-month project to get information right ... is never going to get it completely right the first time. It would have to be an ongoing program to try and proof risk data.
A lot of firms are trying to address risk management issues post-crisis. They don't have massive budgets and most are trying to make do with what they have.
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.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
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. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
JSE rolls out exchange data to cloud Marketplace, built with DataBP
The move—part of a broader cloud migration at the exchange—allows financial firms to connect and subscribe to JSE news, market data, and analytics via the cloud.
Bloomberg launches alt data-driven consumer spend index
The combination of alternative data and traditional macroeconomic data will provide insights into a key component of the US economy, as demonstrated by the data’s use by Chicago’s Federal Reserve Bank.
Kepler Cheuvreux builds proprietary execution platform with Adaptive
The broker wants to move away from third-party technologies as DORA’s risk management requirements could make vendor relationships more cumbersome.
Industry seeks to avoid future clashes over data costs
The IMD Wrap: Max wonders when and why buying data became a blood sport.
Facing platform shutdown, former IEX Cloud head buys its assets in 11th-hour bid
Tim Baker, Pedro Aguayo, and a silent partner have come together to purchase IEX Cloud’s assets days before the exchange was to retire all its products on August 31.
New working group to create open framework for managing rising market data costs
Substantive Research is putting together a working group of market data-consuming firms with the aim of crafting quantitative metrics for market data cost avoidance.
Off-channel messaging (and regulators) still a massive headache for banks
Waters Wrap: Anthony wonders why US regulators are waging a war using fines, while European regulators have chosen a less draconian path.
Back to basics: Data management woes continue for the buy side
Data management platform Fencore helps investment managers resolve symptoms of not having a central data layer.