Poor Data Quality is insidious

Consider the myriad of data that fuels KPI calculations. If these values are driven by faulty data:

• customer credit quality measurements
• agency debt ratings
• accounts receivables
• current market exposures

 then how accurate are the indicators that drive your business?

• Economic Capital
• Probability of Default
• Exposure at Default
• Related information that drives decision-making

Incorporating inaccurate data into the calculation stream introduces unknown risk that resonates throughout risk management initiatives. When data is spread out over multiple systems, different data standards, formats, and naming conventions hamper the reconciling of individuals and businesses that have outstanding debt. These data problems also impact downstream default probability calculations. All these exposures can add up to a hefty Economic Capital investment.

The Veracity of Data

GRC requires that business line managers become the responsible 'owners' of all data that comprises their KPIs, such as:

• Probability of Default,
• Loss Given Default, 
• Exposure at Default.

For business line owners to attest to the quality of the data under their custody and control, business teams require insight and intelligence into known and unknown data issues

Data Veracity encapsulates the business aspect of the data accuracy challenge by extending the traditional 'standard' metrics of data quality (completeness, consistency, accuracy, integrity) to include the critical aspects of importance to the business. Data veracity, as delivered through DIG, discerns data meaning from the perspective of the business owners, enabling a process that lets them determine IMPORTANCE, PRIORITY, and BUSINESS IMPACT resulting from the identified data issues.

TS Insight, a data quality dashboard, enhances the scores from standard and custom business rules applied to the data by adding metrics based on ownership, priority, and significance to assess the business impact of analysis results.

DIG into data quality to mitigate risk

The Data Intelligence and Governance (DIG) solution provides a flexible and transparent approach to managing the data used in risk rating and reporting. DIG helps business teams who understand the data and governance teams who perform data management collaborate with technology teams to specify, identify, validate and manage the veracity of data—data that is at the heart of all risk calculations. 

Call us for a consultation with a Data Intelligence and Governance solution expert