CDOs Cannot Be Lone Rangers
Chief data officers bear brunt of problems but must share authority to act on changing data management
About six weeks ago, Kara Stein, a commissioner at the US Securities and Exchange Commission, raised the possibility of the agency starting its own data strategy department, which could come with a chief data officer (CDO) to lead it. That sparked a question in this column about whether a CDO could be more successful and influential in that agency than in the financial firms themselves.
At the recent North American Financial Information Summit, some CDOs discussed the internal politics of their role within their firms. Chief information officers (CIOs) are reluctant to take the responsibility for data that is now going to CDOs, as John Bottega, former CDO at Bank of America, the Federal Reserve Bank of New York and Citi, and now a senior advisor at the EDM Council, and Tim Baker, global head of content strategy innovation at Thomson Reuters, related.
Data is a "control function," according to Bottega, and CDOs are the ones who "have to stand in front of the regulators and say that they understand where the data comes from, how it's being used and that it's being used properly throughout their firm." Data is "systemic," however, so Bottega asked why this is only the role of a CDO and not some combination of CDOs, CIOs and/or other chief-level officers in a firm.
If CDOs should be wielding their influence on strategy—items like a firm's data governance planning—rather than day-to-day data operations, as Claire Sprawson, head of global client data management at RBC Capital Markets, said, is that the best way for whoever fills a CDO role to operate?
Possibly, CDOs will be seen as the "people who can fix" issues with data management, as Sprawson called them. Tina Wyer, who became CDO of JPMorgan Chase eight months ago, described her role as whatever she and the rest of the management of the firm think it should be—which is telling. The CDO's role is not just what the CDO thinks they should be doing or thinks their impact should be, but is defined by the CDO working in tandem with executives in charge of various other functions at their firms.
Even though very capable executives like Wyer and Sprawson are taking on the challenge of the CDO role, it's becoming better understood that merely establishing the role is only the beginning of pursuing results like lower operational risk, better data processing efficiency and better client service.
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
CrowdStrike outage spurs rethink on ‘critical’ vendors
Some want US regulators to designate tech firms that pose risks to financial stability
Regulators recommend Figi over Cusip, Isin for reporting in FDTA proposal
Another contentious battle in the world of identifiers pits the Figi against Cusip and the Isin, with regulators including the Fed, the SEC, and the CFTC so far backing the Figi.
Déjà vu for common domain model
Piecemeal progress on ambitious derivatives data standard raises questions over business case
The IMD Wrap: With Bloomberg’s headset app, you’ll never look at data the same way again
Max recently wrote about new developments being added to Bloomberg Pro for Vision. Today he gives a more personal perspective on the new technology.
Cboe reports strong Q2 but misses target for data and access business
On its Q2 results call, Cboe detailed plans to increase 2024 revenue for its non-transaction business amid growth numbers that fell short of the company's stated expectations.
This Week: ISI buys EPFR; Bloomberg, Warsaw Exchange, Fenergo and more
A summary of the latest financial technology news
LSEG unveils Workspace Teams, other products of Microsoft deal
The exchange revealed new developments in the ongoing Workspace/Teams collaboration as it works with Big Tech to improve trader workflows.
Kimsey debuts ‘Who bought what’ dataset to help vendors target sales
Kimsey Consulting’s latest report breaks down reported industry spend by client type, product type, and geography to help suppliers and investors pinpoint future sources of demand.