In 2015,was pushed to the forefront to address the risk management and compliance demands from new regulations. These demands have increased the quality levels for data management and governance. As a result, while there has been significant progress made with data management technology and leadership, new and continuous regulatory compliance and standards efforts will continue to impact data operations. In turn, there will also continue to be more emphasis on how harmonization may change data management and operations.
Data management changes that moved to the forefront of governance efforts last year
One of the most significant technological changes was that internal systems and cloud systems matured. Last year, there was a push to create centralized systems for business-critical data through multi-channel sourcing in internal or cloud-based systems. There was also an evolution of data analytic and dashboard tools used in tracking lineage and resolving errors. Semantic technology changed as well in 2015 as the standards used to improve the quality of information derived from systems relationship knowledge advanced significantly.
The way risk data is handled has changed risk mitigation processes
New regulations continue to drive buy-side asset managers to improve risk data management systems. Executives in these firms need to ensure that data is clean and accurate because incomplete data is no longer an economically viable option. The only way to get these clean data results from extraction is to implement robust infrastructure and accurate models to ensure effective reporting processes. Furthermore, data accountability policies and procedures not only need to be comprehensive and aligned with regulations, but they must be regularly examined to ensure that data gaps and errors are identified and addressed.
The influence of chief data officers on data centralization going forward
Enterprise and master data management will only be as effective as the leadership of chief data officers. Their influence over data centralization efforts will determine how a firm will implement and use its data management systems. This is important for several reasons – while a centralized data management system can reduce flexibility, these managed data services are crucial in eliminating proprietary data silos. The way to ensure that these systems are efficient is to harmonize all enterprise and master data management.
These promising technological developments in data management need CDOs to support their continued advancements. The CDO will continue to have more influence over enterprise and master data management because they will have a great impact on evolutions inand operations. To meet increasing business and operational demands, the role of CDOs will remain unique to each asset management firm in order to meet their specific data management, collection and analysis needs.