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Effective data governance requires buy-in of many stakeholders

Companies that want to establish an effective data governance framework should keep in mind that doing so usually requires involving people at many different levels of a business.

In particular, buy-side financial institutions looking to ensure they have the proper mix of rules and regulations should be aware of this concern.

Financial institutions deal with multiple challenges
Many firms have been scrambling to implement an optimal framework of company policies at a time when the amount of data available is surging and the regulatory environment keeps changing.

In addition, many companies have been striving to make the best possible use of the robust information that is at their fingertips, but frequently encounter limitations on how efficiently they can harness this data. For example, firms that have access to troves of information can potentially discover a wide range of correlations. However, these relationships might not necessarily be helpful.

Buy-side firms navigate difficult regulatory environment
Many firms are coping with a regulatory environment that is both complex and constantly changing. Lawmakers and regulators have implemented several different landmark reforms over the last several years, including Dodd-Frank Act and European Market Infrastructure Regulation. While this has created an intricate framework of regulations, various parties have been challenging existing regulations through both the court system and legislation.

In this environment, individuals who want to create the proper data governance framework need to consider a wide range of variables, including the quality of their key information and the associated expenses, people stated during a recent industry webcast, according to Inside Reference Data. In addition, those on the IT side of things and people who are focused on achieving business objectives need to be on the same page in terms of what they are looking to accomplish.

Sumanda Basu, a senior vice president at a major financial services institution, stated that ownership, quality, transparency, accountability and auditability are all major factors that motivate key players in companies to come together and resolve their data challenges, the media outlet reported.

This might run contrary to conventional thinking, which could potentially single out a desire for cost savings as the major contributor to data quality initiatives. Such concerns are understandable, as many buy-side financial institutions are struggling to do more with less, making an effort to make more robust use of data at a time when they are facing budget constraints.

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