Anyone involved in managing information for buy-side financial institutions should always focus on following key data governance principles, market expert Julie Benson wrote in a recent Banking Tech opinion piece.
Expert notes importance of following proper procedures
Benson, test and implementation manager for a company that provides entity data management technology to buy-side financial institutions, wrote that people who work in the industry should be sure to focus on following the right procedures, regardless of whether the company where they work is doing so. At least for now, various forces are coming together to ensure that financial staff focus on developing and implementing the right processes for their data.
For example, lawmakers and regulators have enacted several important reforms in the aftermath of the financial crisis, such as Dodd-Frank. As a result, financial firms are now required to adhere to more stringent regulations in terms of how they store and report their data.
Amid the new situation, companies have put significant due diligence into creating the optimal framework for their information. For example, many firms have been setting up chief data offices to ensure that their corporate infrastructure emphasizes the importance of their crucial information.
Data managers can benefit from following certain steps
Even in organizations that do not have this keen focus on data governance, Benson noted that people involved in managing financial data can benefit from asking a few important questions. First of all, companies need to determine who is actually responsible for an organization’s crucial information. In addition, firms should ask who else needs to leverage this data – what other staff and technological systems might use it?
Finally, buy-side financial institutions should take time to consider what exactly is contained in their data, and how this information is used. The market expert noted that if companies do not take the time to explore these key questions, they could easily end up in a situation where the data is stored in many separate formats and in different places.
Companies that do not take the time to figure out these considerations could run into other problems. For example, their data integrity might suffer if their key information is stored in many different formats. Updating the information contained in one type of file and then relying on data stored in another format can result in decision making that could be better-informed.
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