Data Governance
Data Governance
Best Practice
Manage your data
Agenda
• Introduction
g
• Introduction
• James Cole
• Best practice tips
• Derek Munro – X88
In the News: FSA, Feb 2011
• Data management appeared to be one area
• Data management appeared to be one area
where firms still have comparatively more to
do
do
• Few firms provided sufficient evidence to
show that data used in their internal model
was accurate, complete and appropriate
• We expect issues and reporting on data
About X88 Software
• UK software company
• UK software company
• Expert data management practitioners
• Already built a successful software company
• Deutsche Bank, Canopius, Financial Times,
Lehman (Capstone), ...
• Software 4 years in development
Software 4 years in development
• Data Profiling & Discovery
• Data Integration
• Data Integration
Data Governance Overview
• Identify what we need to govern where
• Identify what we need to govern, where
it is, who owns it and who is custodian
• Find, quantify, prioritise and fix issues
• Initially and over time
• Initially and over time
• Report on data quality management
• Summary and detail
Challenges
• You can’t do it in Excel!
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You can t do it in Excel!
Data Governance plan (1/3)
• Build a cross system view of all your data
p
(
)
• Build a cross‐system view of all your data
• Find all the relevant data, wherever it is
• Establish a common vocabulary e.g. net
premium and associate the actual data
premium, and associate the actual data
Data Governance plan (2/3)
• Specify and validate intelligent quality rules
p
(
)
• Specify and validate intelligent quality rules
• Establish relative weights for rules & data
• Collaborate to establish a financial weight for data
• Collaborate to establish a financial weight for data
e.g. based on premium amount? insured amount?
Data Governance plan (3/3)
• Provide useful data quality reporting
p
(
)
• Provide useful data quality reporting
• Quantitative & financial data quality KPIs
• Provide summary and actionable details
• Establish quality objectives. Is 99%tolerable?
• Provide a full audit trail and answer ad‐hoc
questions from auditors & regulators
questions from auditors & regulators
• Created as part of the process, not an add‐on
Ad h
i
th
t
d t b
Choosing a solution
• Home grown solutions
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Home grown solutions
• Time to build. Require technical expertise
• Software packages
• Software packages
• Different costs, functionality & required skills
Solvency II
Data Governance
Data Governance
Introductions
Introductions
•
Sanjay Kaul – Risk and Regulation Lead for Logica UK.•
Our people have supported the delivery of Solvency II with over 30 Insurers including over 10 Lloyd’s Insurers.•
We have and continue to deliver data governance, data directories, data dictionaries, data repositories and data management processes, methods and tools for Insurers to meet Solvency II requirements.•
Working with leading Insurers, we have developed an accelerated approach to delivering g g p pp g information, data and systems for Solvency II.Insights
Insights
•
Align data policy and governance with the business operating model. Early attempts to enforce policy and governance on stakeholders has often failed.•
Use centralised standards with local flexibility.•
Comparing like for like, eg Standard and Poor, Moody’s and Fitch all have different sets of ratings. Governance and data quality management over these needs to followconsistent standards and metrics.
•
Data governance and quality across the data supply chain. A different use of premium g q y pp y p data across underwriting, pricing, claims, provisions, operational planning and disclosure can result in different data quality criteria.Organisational Blueprint
Corporate
Stakeholders CommitteeSteering
Leadership •Policies
Organisational Blueprint
Stakeholders Committee •Principles •Targets •Funding •Conflict escalationFinance Risk Operations
Management Finance p
Data Governance Group
Actuarial Data
Investment data Customer Data
Management •Policy Implementation and compliance •Business Cases Actuarial Data Champion Investment data Champion Customer Data Champion •Benefits Realisation •Conflict resolution Data Stewardship Delivery Contracts Data Steward Products Data Steward Bonds Data Steward y
•Advise Best Practice •Assess Value/Cost
•Report Value/Cost
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Data Quality Results
Data Quality Results
Dashboard
•Consolidated Scores R l d t il
•Rule details
•Graphical indicators •Rule scope & parameters
Thank you
Thank you
Logica Business Consulting 7thFloor, Kings Place, York Way, N1 9AG, London, UK www.logica.com/consulting
