In the past few years, the Financial Services Sector has been working to comply with a range of regulations that have called for Data Governance to be embedded in their business, including the likes of Solvency II and BCBS 239.
Many companies are probably relaxing a little as dates for these regulations have now passed or are imminent. But what is next? Can Financial Service companies stop focusing on data and data governance?
I’m known as The Data Governance Coach, the person who promotes the benefits of Data Governance to everyone, so obviously you’d expect me to say no, of course, they cannot, or should not abandon data governance.
But let’s be clear, the reason I say no, is not based on an evangelistic stance of managing data for the greater good. Firstly meeting the existing regulatory requirements was not a one-off project. They require an ongoing commitment to manage and protect the quality of your data going forwards. In addition, there are a number of new regulatory requirements and changes coming in the sector that will lead to an increased focus on data.
This is certainly not the time to stop managing your data proactively.
The new regulations may not spell out that “Data Governance” is needed but if you have implemented Data Governance properly, your Data Governance Framework should sit at the centre of all your data activities now, ensuring that everything is aligned with both each other and the corporate strategy of your company.
So let’s look briefly at a few of the themes that are going to impact the Financial Services Sector over the next few years:
No blog on this topic would be complete without mentioning GDPR. The General Data Protection Regulation coming into force in May 2018. That may sound a long way off, but the requirements to manage personal data are likely to require a significant change in how you manage your data.
I have found that the Data Protection Officers at my clients are very pleased that I am helping mature their Data Governance approach, as some of the GDPR requirements have a direct link to Data Governance. For example, you need to prove data accuracy, data integrity and in order to enact the right to be forgotten (i.e. data erasure) you need to know what data is stored where on your systems and where better to hold that than in a Data Glossary? Improving your Data Governance Framework leaves you in a better place to meet these GDPR requirements.