Regulatory reporting consumes a huge amount of your time and resources. It’s a fact. Since 2012, firms have spent more than 50 percent of their time preparing regulatory reports versus performing analysis and review1. And as new standards emerge, it’s only getting harder.
Data isn’t just a means to a regulatory end, though: It’s one of your most important commodities. As your peers become increasingly agile, you must, too—collecting, arranging and producing insights from the billions of bits and bytes your business receives and generates every day.
But how can you comply—and compete—when there are limited hours in the day and few employees to simply do the math… let alone strategize?
Read ahead to discover the science behind increasing regulation, the steps you must take to secure your compliance, and the solution that can empower you to get ahead of both regulators and your competition.
Following the 2008 financial crisis, regulators have been ultravigilant of risk, and are introducing new policies and procedures to ensure financial organizations are as well.
That includes Basel Committee on Banking Supervision (BCBS) 239, one particularly pertinent regulation for businesses like yours.
Its 14 principles—including completeness, timeliness, and adaptability—have been put in place to address the gaps in financial institutions’ risk data aggregation and reporting (RDAR) capabilities.
BCBS 239 makes sense. It’s enabling regulators to eliminate data issues at their source. It’s driving organizations to re-evaluate their data infrastructure and improve the way they work. It’s helping big banks to set a precedent for their peers.
Still, it’s also stretching many businesses’ compliance efforts to their limits, shifting regulators’ focus toward:
Thirty major institutions were asked to comply with BCBS 239 by January 2016. But in January 2016, none said that they were “already compliant” with the new standards, and only 5 percent said they would be within 12 months.2
The biggest barrier in their way? Poorly managed data—from a lack of data quality and painful processes for regulatory submissions to multiple data sources for reporting, inconsistencies in reports, and a lack of data lineage.
It’s unsurprising that data management is an issue. Worryingly, as much as 80 percent of a financial enterprise’s data is unstructured, but only 21 percent of institutions rate unstructured big data as critical or important.2
If you haven’t been called up to comply, none of this matters, right? Wrong. Look ahead to see why it’s time to take control of your data.
Unstructured data
Critical or important
1 E&Y 2015 Federal Reserve regulatory reporting survey.
2 Chartis Risk Data Aggregation and Reporting Survey 2016.
Whether you’ve been requested to adhere to BCBS 239 yet or not, now is the moment for you to become compliant—not complacent.
Those who have already observed the regulation are beginning to experience the real benefits of a strong, integrated enterprise-data environment. They include:
Simplified reporting
Improved analytics
Better-managed risk
Competitive advantage
The question is, how can you improve your data management to reap these benefits for yourself?
The answer: standardizing, standardizing, standardizing. More specifically, standardizing:
The way you collect, handle, and store data
The platforms you use to do so
The method you use to track and maintain data lineage
All of the above, across all your lines of business and data silos
To do so,
you’ll need to:
Change how your data is stored, accessed and reconciled using a considered combination of technology and processes to ensure it’s all extracted, transformed and stored in a way that keeps it timely, relevant and accurate
Establish a single source of truth by either integrating a variety of solutions to tie your risk, performance, compliance and customer data together, or selecting one unified platform
Create a cultural change around data quality by applying rigorous processes throughout your organization, and educating all employees to ensure the processes are followed correctly
Or, the simpler answer: Oracle Financial Services' data management solution.
Oracle Financial Services data management solution is engineered to help you create a unified, standardized, and future-ready enterprise data environment.
The solution:
Ultimately, it can bring all of your disparate data together, helping you:
So if you’re seeking a way to achieve not only compliance but also data excellence, look no further.
Ready to take control of enterprise data once and for all?
See how Oracle can help you get ahead of the curve today.
oracle.com/goto/enterprise-data-infowall