Data Reg - Empowered by Data Designer
Put Data at the Core of Regulation
Data should be at the core of any business. Regardless of where it is stored, users should be able to access, understand and use it dynamically to fulfil regulatory data requests. From a data core users can enable and drive automated collection, validation and submission of required data to financial regulators.Challenge: The Velocity, Volume and Variety of Regulatory Data Requests Continues to Increase
In an environment of rapidly growing regulation it is difficult for financial institutions to maintain control. To keep up with change, they frequently have to fall back on tactical solutions of manual, labour intensive processes, ad hoc spreadsheets and regulatory-specific repositories. These eat up valuable resources, require armies of consultant and contractors and result in costs growing at the rate of millions.Despite institutions best efforts, regulators typically still have little to give them confidence that they can soundly rely on the data being provided. And even if an institution manages to automate data collection, that automation is often based on 'hard-coded' database queries and regulation-specific validation and processes. All of these are fragile and made obsolete when the next round of regulatory changes arrive.
Data Reg Bridges the Gap
A financial institution needs to easily automate data and its solutions. If an updated regulatory data request is received, a business should be able to automatically upload it with all related parts of the business (systems and processes) updated.Data Reg bridges the gap between data at its source and data for regulatory submission. Using key features empowered by Data Designer, Data Reg works across the regulatory lifecycle through:
- Data Design: Capture both a financial institution's internal data models and those used by regulators. Having both enables model-to-model mappings to transform data from its internal source to regulatory submissions.
- Data Define: Provide detailed business descriptions, organisation and context of regulatory data requests and internal systems. Enable dynamic updates as changes occur.
- Data Check: Provide regulatory and internal business rules to enhance the definitions and validation of data for submission.
- Data Connect: Connect and trace data from its source to the required format for regulatory submission, including performing necessary transformations, linking to validation rules and generating submissions in relevant formats.
Data Design
Data models organise data, structuring it into related data elements driven by business needs. Data Reg uses the same underlying data models as regulators. Figure 1 shows part of the data model used for the Bank of England's Firm Data Submission Framework, which is very similar to the data point model used by the Basel Committee's Capital Requirements Directive IV.This means any changes by the regulators to the underlying data models are automatically reflected throughout the Data Reg system. As Data Reg can capture the data models used by a financial institution, automation of changes includes the mappings Data Reg uses to transform data from an institution's sources into the formats for regulatory submission.
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| Figure 1: Data Design - Bank of England's FDSF Data Model |
Data Define
Data Define is far more than a dictionary. For Data Reg it captures all aspects of the organisation and business descriptions relating to regulatory data requests. With these regulatory frameworks in accessible, organised and well defined collections Data Connect can link to a financial institutions systems to build automated, validated pipelines for fulfilling the regulatory requests. |
| Figure 2: Data Define - Example Data Collections for Financial Regulation |
Data Check
Data Connect
Data Reg enables financial institutions to collect and submit responses to regulatory data requests using whatever form of connection best works. For collection, examples could be manual input, drag and dropping spreadsheets or direct queries into data sources. For submission regulators may specify submission of spreadsheet templates, electronic formats like XML or direct connections to regulatory systems.This enables teams to coordinate, automate, validate and audit even the most complex data gathering requirements.
Figure 4 shows a user interface generated for the 'ALM & Liquidity' component of the Firm Data Submission Framework. The drop down box for 'Balance Sheet Header' shows an example of how automated validation is incorporated.
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| Figure 4: Data Connect - Generated Data Request from Regulator |
