During 2013, RIMES hosted 32 round-tables in all the main global financial centers where 353 industry professionals representing over 150 buy-side firms participated. Forum reaction indicates frustration with an inability to address challenges related to data quality and the potential reputational risks involved as data volumes increase. At a time where many firms are unable to adapt quickly, emerging regulations represent new and significant data management issues as well.
Feedback also shows that the pursuit of investment returns and continuing product diversification is generating demand for additional data which must be sourced, managed, stored and distributed. Additionally, complex investment strategies require an increasing number of benchmarks which is putting unprecedented pressure on asset managers.
“As firms will continue to be torn between the competing demands of clients, data vendors and regulators, feedback from our forums suggests that the need for strong data governance will be even greater in the future,” explains Alessandro Ferrari, SVP Global Marketing, RIMES. “Data management is becoming an important determiner of commercial success. Best practice data management requires a combination of strong data processing, which ensures that the correct data is always delivered in the required form at the right time, and strong data governance, which keeps costs down by ensuring that data is only purchased and processed when required.”
Forum responses suggest universal reasons for firms to focus on data governance including more efficient management of cost objectives; ensuring compliance with vendor license agreements; and meeting current and evolving regulatory requirements. Firms face a difficult choice to either further leverage the investment made in existing systems or choose a new approach with a specialist partner offering a managed data service.
RIMES forums reveal that firms must regain the ability to act quickly and cost effectively. The first step is to build the right data operating platform; one that offers flexibility, transparency, sound data governance and total cost of ownership that is aligned with business success.
Ferrari continues, “Working with the right partner can help firms build the appropriate data operating platform to meet the compliance requirements of new legislation as it emerges. Using a managed data service allows firms to adopt a holistic approach to data management and to develop the right strategy for the governance of index and benchmark data.”eoyforum13_8ppussgl_02b