Avantage Reply assisted a local universal bank with the effective implementation of data governance capabilities. As part of a broader initiative to ensure the bank’s compliance with BCBS 239 principles, our client needed to document the key source data related to credit risk and ALM calculation tools. Additionally, there was a need to define, implement and run processes allowing remediation of data quality-related issues.
The Avantage Reply team performed business analysis to identify relevant regulatory reports and corresponding source data, and provided standard definitions for each of those. In parallel, a new bank-wide process to detect, record and solve issues, has been put in place.
On this occasion, other processes supporting data governance could be developed and implemented giving a solid base for the improvement of data quality within the organization.
To ensure full compliance with BCBS 239 principles, our client needed to implement a certain number of data governance capabilities. Equally, the existing documentation of source data used for the regulatory calculation and reports has not been sufficient. Avantage Reply has been asked to support the following tasks:
Although the organization has initiated various BCBS 239-related projects in the past, the resources allocated to the implementation of data governance capabilities and, overall, internal engagement have seemed insufficient. Therefore, a lot of effort was attributed on a gain of priority for the data initiatives among the key stakeholders and contributors.
Additionally, the team has been undergoing internal reorganization resulting in a change in management and strategy.
In order to achieve abovementioned goals, Avantage Reply assigned a senior resource to perform the necessary business analysis but equally lead internal and external members of the team. The team’s work has been structured in streams dedicated to each of the topics and progress has been followed and reported in the periodic data forum.
When it comes to the documentation of key source data, initial business analysis allowed to select data important to credit risk and ALM calculation. As second step, a series of collaborative workshops has been organized to confirm which of the preselected data were relevant for business and to ensure the data ownership is correctly allocated. Finally, all confirmed data could be documented using a central data repository, including business definitions, data domain, sensitivity and confidentiality aspects.
A data quality management process has been implemented as a strong priority, since the bank was missing an organized step-by-step approach to allow the reporting, analysis and remediation of data quality-related issues. In order to do so, roles and responsibilities have been allocated, including the central role of a data analyst, who conducted the initial investigation of reported issues and coordinated their remediation. The process has been supported by the existing workflow tool of the bank to allow broader access and limit additional costs. The newly defined process has been documented and awareness sessions conducted across various business lines.
Finally, at the occasion of the above work, the need for a complete and up-to-date reports inventory has to be addressed. Avantage Reply supported the clean-up and completion of the reports repository including all regulatory and BCBS 239 reports. A dedicated recurrent process has been initiated to update the documentation of reports on a periodic basis. As a result, our client benefits from the comprehensive common base of reports produced within the bank and has documentation standards set.