RIMES, the leading provider of managed data services for the buy-side, has released the RIMES Data Governance Best Practice Handbook, a step-by-step guide for investment managers, pension funds, custodians and other asset owners to build robust data governance structures for enhanced benchmark management capabilities.
In developing the Best Practice Handbook, RIMES worked in conjunction with Investit, a specialist investment management consultancy, to outline detailed guidance on how asset managers can move from their current operating models towards achieving best practice in index data and benchmark data governance.
Built on extensive real-world experience from across the buy-side universe, the handbook describes proven approaches that are informed by the data processing and governance expertise of both RIMES and Investit. The guidance also draws from qualitative interviews with 16 investment managers ranging from large global firms to smaller domestic operations spread across the US and Europe that already demonstrate above average practice in data governance.
“Given ever-greater data volumes, complexity and growing regulation, one of the most urgent issues facing the buy-side is data governance. We at RIMES have been encouraged to find that a significant number of asset management organizations are increasingly recognizing the importance of good data governance, especially over the past 12 months,” explains Steve Cheng, Global Head of Data Management Solutions at RIMES. “While there is an agreed need to act, many firms still struggle with the practicalities of how to implement best practice in their organizations.”
For each element of best practice, the handbook defines the characteristics and process flows asset managers need to put in place, followed by a three stage approach outlining the specific actions that must be taken. These include:
- Stage 1 – Taking stock of a firm’s current standing
- Stage 2 – Getting control of data and processes
- Stage 3 – Moving forward to build governance into everyday procedures
According to Cheng, “The effective and efficient management of index and benchmark data has become a key operational challenge for investment managers worldwide. Firms must take into account both data quality and total cost and form strategies that address regulatory changes as well. The RIMES Data Governance Best Practice Handbook delivers a forward-thinking approach to our buy-side partners as it is designed to discuss and reflect on the leading examples of best practice for the various elements of a successful data governance framework and to provide an efficient frontier of best practice for which firms should aim.”