Data Governance for Financial Risk Management
Using Orchestra Networks Master Data Management Software, a leading bank unifies its credit reference data in order to reduce risk exposure and enforce Basel II compliance.
Context
In 2006, this bank launched a global initiative for credit risk management and regulatory compliance. In a Basel II compliance context, the main objective of the project was to provide unified and consistent credit reference data used across the bank for credit risk evaluation, by the end of 2007.
The main challenge was to consolidate and then manage securely more than 150 data objects and around 1 million records that was dispersed in multiple systems, including databases, ERP or spreadsheets. Risk managers had to take ownership and management of Master Data and be able to track changes between versions.
“Our Credit Risk team had 5 months to meet a regulation deadline by providing a single point of management of all risk reference data consumed across our organisation. EBX.Platform helped us accelerate and secure our Data Governance program
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Data Governance Objectives
Main project goals where:
» Build a central credit risk reference data repository
» Enforce rights and security rules for risk managers across the bank
» Define complex data validation rules and integrity controls
» Provide an highly detailed audit trail for SOX compliance
» Maintain multiple versions of credit risk data
» Empower risk managers with a user-friendly data management tool
Solution: EBX.Platform
In order to meet the short deadline, the bank selected EBX.Platform against a custom development. EBX.Platform provided out-of-the-box Data Governance features that allowed to build a secure and operational MDM:
» Role-based security and end-user workflow
» Master Data validation rules
» Audit trail and version control
» User-friendly GUI for risk managers and end users
» Ability to expose Data as Services, in order to propagate changes to multiple systems
Benefits
» Meet the regulation deadline by developing a first prototype in 2 weeks and then deploying an operational credit risk MDM in less than 5 months
» Improved user involvement by providing a user-friendly, workflow-oriented tool
» Avoid credit risk inconsistencies by defining complex validation controls and enforcing rights and security rules
