ABA Banking Journal - November/December 2015 - (Page 56)
A Regulatory and
BY TIMOTHY R. BURNISTON
ata is a valuable, strategic
asset for financial institutions.
It not only helps your
organization meet compliance
requirements, but it can help
you gain deep insight into customer
behavior and make critical business
decisions. And as effective data
management becomes an increasingly
important competitive differentiator
in the financial services industry,
those whose jobs revolve around
data would be well served in working
toward becoming true stewards of
their organization's data resources,
as 'data stewards'
The controls you place around your
data must be tight and comprehensive.
Obviously, data needs to be collected
and reported correctly. And you
need to take ownership of it, be able
to provide it as needed to the rest
of the organization at a moment's
notice, and be confident in its validity
when you do. Critically important are
data accuracy, data integrity, and
data governance in carrying out the
responsibilities of a compliance officer,
a fair lending officer or a CRA officer.
ABA BANKING JOURNAL | NOVEMBER/DECEMBER 2015
For many years, the roles of
compliance departments and the chief
compliance officer reflected narrow
expectations. Compliance was asked
to ensure regulatory requirements,
including data collection and reporting
requirements, were met. Compliance
collected data, ensured it was clean
and accurate and met regulatory edit
checks and reported it to regulators.
That hasn't gone away, but now
compliance is being asked to take
on additional responsibilities for data
governance. A quick scan of online
sources, as well as the highly-regarded
Data Governance Institute, defines
data governance as a discipline
for assessing, managing, using,
improving, monitoring, maintaining and
protecting organizational information.
It is a system of decision rights and
accountabilities for information-related
processes, executed according to
agreed-upon rules that describe
who can take what actions with what
information, and when, under what
circumstances, using what methods.
In day-to-day practical terms, data
* The control of data entry.
* Testing data files against source
materials to promote accuracy.
* Control over the processes and
methods used by one's data stewards
and data custodians to handle data.
* Ensuring that important data assets
are formally managed throughout the
* Ensuring that your institution's data is
reliable and verifiable.
* Using technology to aid all of the
processes that promote data accuracy
Data governance is a core element
of risk management. And perhaps
more importantly to CEOs and
CFOs, these activities can facilitate
safe, profitable growth through
more informed and supportable
decision making. That makes the
role of compliance professionals-
with immense responsibilities for
data governance-arguably more
important than ever before.
Consider the many circumstances
in which you are stewards for your
organization's information and data.
For example, you are responsible for
accurate reporting of HMDA and CRA
Table of Contents for the Digital Edition of ABA Banking Journal - November/December 2015
A Conversation With the Comptroller
Cover Story Doing the Right Thing
Big Data and Predictive Analytics: A Big Deal, Indeed
Stress Testing: Feeling the Pressure?
ABA Compliance Center Inbox
Cybersecurity Self-Assessment Tool Helps Combat Risk
Real Estate Lending
Banker Recommended Reading
From the States
Corporate Social Responsibility
Index of Advertisers
ABA Banking Journal - November/December 2015