Basel Committee for Banking Supervision (BCBS) Directive 239 on Risk Aggregation
BCBS239 was one of the first banking regulations to set explicit requirements for the data architecture of financial institutions, and tightens previous directives about the quality of data. Architector’s founder, David Twaddell, led the response to BCBS239 from the data architecture community, and this response is listed in the official feedback for the directive (under the banner of the “Independent Data Professionals Group“). Read the feedback here.
BCBS 239 talks about tracing the source of data back from risk reports, and managing the risks to data quality along the data lineage. The aim is, of course, to make risk reports more reliable.
Your data team can use Architector to document the data used in reports, how it is derived, and where it is stored and sourced from. Architector also tracks know issues along the data lineage. And responsibilities for data assets can also be recorded in Architector.
Architector fast-tracks your BCBS 239 compliance, and supports the on-going, business-as-usual, management of data across your organisation.
Financial Crime Detection and Deterrence
Protecting banks against fraud, money laundering, and other financial crimes, is not an easy task. It absolutely relies on banks having a clear and accurate picture of their customers, customer accounts, and transaction activity. Banks employ extremely sophisticated models to anticipate likely crime, and to detect crime as it occurs, and to create crime deterrents.
The anticipation and detection of crime therefore is highly dependent on the quality of the bank’s data, and on the bank’s ability to manage its data, manage the risks to data quality, and to improve data quality.
Architector is designed to quickly and efficiently define data, and data quality standards, in an unambiguous way, in a central data repository. And then to link this to all the uses and users of data across the organization. Understanding the lineage of data, from where it is created to where it is used (in crime management systems), is key to understanding and improving the quality of the data.
Contact us today to find out how Architector can help accelerate your data team’s support of Financial Crime undertakings.
Insurance – Solvency II
Solvency II is a European directive to insurance companies operating in Europe to improve the way they manage and report their solvency position. It requires insurance companies to predict their solvency position under certain market conditions, and it therefore helps the regulators to manage and reduce the potential fall-out from insolvent companies.
The solvency models require a lot of data, and the predictive accuracy depends on the quality of data used. The regulations therefore require insurance companies to understand and, where appropriate, improve the quality of data used. And also to manage the risks to data quality along its lineage.
Understanding data lineage is therefore a key element of Solvency II compliance.
Architector is designed to get lineage under control fast, and to facilitate its ongoing management. This helps the data team define and implement the appropriate data controls.
Data Audit Compliance
Modern data audit frameworks place a high demand on the users and producers of data to evidence that they understand the data they create and/or use, and that they have appropriate controls around it to prevent quality issues creeping in. There are likely to be specific audit requirements around security, access control, education and awareness, disaster recovery, and legal and regulatory frameworks.
Architector can help in at least two ways. Firstly, it helps the users and producers of data by improving the transparency of how data is manipulated and managed within their departments. Secondly Architector can be used by the Audit Department themselves, to identify areas of interest, to support data risk assessments, and to document their understanding of how data moves in the organization.