'Enterprise-wide approach' to risk management will increase data quality
04/06/2010 12:00:00
The quality of data used in risk management would improve if a wide strategy for controlling valuable information were adopted by financial services firms, it has been suggested.
Over the coming months, critical decisions need to be made on global financial regulatory reform and they need to reflect an integrated approach to systemic risk, the Institute of International Finance (IIF) said recently.
Daragh O Brien, a member of the International Association for Information and Data Quality (IAIDQ) and its former publicity director, said: "If operations were simplified and an enterprise-wide approach to managing critical information assets were implemented we would see increased transparency."
This approach to business risk management could "in turn lead to more timely and accurate data and information", he added.
The quality of data played a role in the global economic downturn because it was "not easy to get hold of" the exact data needed "to support a heavy user like risk management", Mr O Brien explained.
A survey conducted by Lepus, which was published earlier this year by Thomson Reuters, found that more than three-quarters of top financial services firms planned to increase their spending on projects focussing on data quality and consistency issues in the wake of the recession.
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