Alignment: Office of the Chief Data Officer & BCBS 239
Published in: Business
Transcript
- 1. @CraigMilroy 09-2014 Alignment: Office of the Chief Data Officer & BCBS 239 Craig C. Milroy, Chief Data Architect
- 2. @CraigMilroy 09-2014 When did Banking Become So Complicated? Increased data centricity
- 3. @CraigMilroy 09-2014 Financial Services Example 2008 2009 2010 2011 2012 2013 2014 Increased Regulatory and Customer Demands Dodd Frank SEC Proxy Disclosures Basel III FATCA Lehman Brothers #BIG DATA #OPEN DATA #INTERNET OF THINGS BCBS 239 2016 Implementation
- 4. @CraigMilroy 09-2014
- 5. @CraigMilroy 09-2014 OFFICE OF THE CHIEF DATA OFFICER
- 6. @CraigMilroy 09-2014 Office of the CDO - Overview Chief Information Officer VP Information Management Director Data Management Database Administrator Data Architect Chief Data Officer Chief Analytics Officer Data Scientist Information Architect Chief Customer Officer Chief Marketing Officer Chief Risk Officer … shift data from a project to enterprise centric point of view…
- 7. @CraigMilroy 09-2014 What Would A CDO Mandate Look Like? Customer Growth Growth Speed Customer Innovation Operational Risk Reduction Financial Efficiency Risk Exposure Regulatory Controls Responsiveness … Measure and manage data risk : Enable capabilities to measure, predict risk, and influence enterprise risk appetite…
- 8. @CraigMilroy 09-2014 CDO Organizational Journey "Cloud Cover" CEO CDO CIO CRO/CxO CEO CDO CIO CRO/CxO "Value Realized" CEO CDO CIO CRO/CxO "Organizationally Focused" CDO LOB
- 9. @CraigMilroy 09-2014 Office of the CDO – Straw man CIO CRO/CxO/LOB Board CDO Governance Strategy Innovation Enablement Science/Analytics Communication Policy Quality Model Master Reference Clients Channels Business Capabilities Business Processes Data Foundation External
- 10. @CraigMilroy 09-2014 Core OCDO Components … OCDO needs to consider with an enterprise lens all business technology priorities and has the ability to support Enterprise Regulatory demands… Regulatory Customer Innovation Security & Privacy Info. Lifecycle Management Architecture Master Data Management Governance Database Management DB Integration Analytics & BI Metadata Management Reference Quality Services
- 11. @CraigMilroy 09-2014
- 12. @CraigMilroy 09-2014 BCBS 239 BASEL COMMITTEE ON BANKING SUPERVISION
- 13. @CraigMilroy 09-2014 Governance Architecture Infrastructure Accuracy Integrity Completeness Timeliness Adaptability Accuracy Clarity Usefulness Comprehensive Frequency Distribution BCBS 239 Key Principles
- 14. @CraigMilroy 09-2014 Principles for Effective Risk Data Aggregation and Risk Reporting One of the most significant lessons learned from the global financial crisis that began in 2007 was that banks’ information technology (IT) and data architectures were inadequate to support the broad management of financial risks. Many banks lacked the ability to aggregate risk exposures and identify concentrations quickly and accurately at the bank group level, across business lines and between legal entities. Some banks were unable to manage their risks properly because of weak risk data aggregation capabilities and risk reporting practices. This had severe consequences to the banks themselves and to the stability of the financial system as a whole. Bank for International Settlements January 2013
- 15. @CraigMilroy 09-2014 Principles for Effective Risk Data Aggregation and Risk Reporting High Standard • BCBS 239 set a high standard for risk data aggregation and reporting. • Challenging timeline for implementation. • BCBS 239 raises the standard for risk data quality. Enterprise Lens The BCBS 239 Principles for Risk data can be applied to their other data domains with any organization. The BCBS 239 Principles are the best practices for data that we should have previously implemented but continually ignored.
- 16. @CraigMilroy 09-2014 Principles for Effective Risk Data Aggregation and Risk Reporting … Many in the banking industry recognize the benefits of improving their risk data aggregation capabilities…. …This leads to gains in efficiency, reduced probability of losses and enhanced strategic decision-making, and ultimately increased profitability… Bank for International Settlements January 2013
- 17. @CraigMilroy 09-2014 Principles for Effective Risk Data Aggregation and Risk Reporting Enhance the infrastructure for reporting key information, to identify, monitor and manage risks; Improve the decision- making process throughout the banking organization; Enhance the management of information across legal entities Reduce the probability and severity of losses resulting from risk management weaknesses; The Principles are expected to support a bank’s efforts to: Improve the speed at which information is available and hence decisions can be made Improve the quality of strategic planning and the ability to manage the risk of new products and services. Bank for International Settlements January 2013
- 18. @CraigMilroy 09-2014 Overarching Governance and Infrastructure A bank should have in place a strong governance framework, risk data architecture and IT infrastructure. Bank for International Settlements January 2013 Regulatory Customer Innovation Security & Privacy Info. Lifecycle Management Architecture Master Data Management Governance Database Management DB Integration Analytics & BI Metadata Management Reference Quality Services Principle 1: Governance Principle 2: Data architecture and IT infrastructure
- 19. @CraigMilroy 09-2014 Risk Data Aggregation Capabilities Banks should develop and maintain strong risk data aggregation capabilities to ensure that risk management reports reflect the risks in a reliable way. Bank for International Settlements January 2013 Regulatory Customer Innovation Security & Privacy Info. Lifecycle Management Architecture Master Data Management Governance Database Management DB Integration Analytics & BI Metadata Management Reference Quality Services Principle 3: Accuracy and Integrity Principle 4: Completeness Principle 5: Timeliness Principle 6: Adaptability
- 20. @CraigMilroy 09-2014 Risk Reporting Practices Accurate, complete and timely data is a foundation for effective risk management. Banks should develop forward looking reporting capabilities to provide early warnings of any potential breaches of risk limits that may exceed the bank’s risk tolerance/appetite. Bank for International Settlements January 2013 Regulatory Customer Innovation Security & Privacy Info. Lifecycle Management Architecture Master Data Management Governance Database Management DB Integration Analytics & BI Metadata Management Reference Quality Services Principle 7: Accuracy Principle 8: Comprehensiveness Principle 9: Clarity and usefulness Principle 10: Frequency Principle 11: Distribution
- 21. @CraigMilroy 09-2014 Risk Reporting Practices These risk reporting capabilities should also allow banks to conduct a flexible and effective stress testing which is capable of providing forward-looking risk assessments. Bank for International Settlements January 2013 Regulatory Customer Innovation Security & Privacy Info. Lifecycle Management Architecture Master Data Management Governance Database Management DB Integration Analytics & BI Metadata Management Reference Quality Services Principle 7: Accuracy Principle 8: Comprehensiveness Principle 9: Clarity and usefulness Principle 10: Frequency Principle 11: Distribution
- 22. @CraigMilroy 09-2014
- 23. @CraigMilroy 09-2014 Banking, Big Data, Business Analytics, Business Architecture, Business Capability, Business Intelligence, Business Leadership Business Process, Business Transformation, Chief Data Architect, Cloud, Customer Centricity, Customer Relationship Management , Data Architecture , Data Assessments, Data Exploration, Data Governance, Data Integration, Data Process Modeling, Data Quality, Data Strategy, Data Streams, Data Visualization, Data Warehouse, Design, Financial Services, Enterprise Architecture, FSLDM, Hadoop, Information Lifecycle Management, Investment, Master Data Management, Metadata Management, Mobile, Next Generation Data Platform, Open Data, Open Source, Reference Data Management, Roadmap, Risk Management, Startup, Technology Stack, Thought Leadership craigmilroy ca.linkedin.com/in/craigcmilroy