RiskTech Forum

IHS Markit: Data Management and Data Governance Priorities of Tier 2 and Tier 3 Asset Managers

Posted: 3 October 2016  |  Source: IHS Markit

New research indicates asset managers are now elevating data governance to the same level of importance as data management. Across financial services, fractured data quality continues to cause concern and IHS Markit/ WatersTechnology research shows asset managers have pushed data quality to the top of the priority list. The increase in the use of indices, benchmarks and blends—combined with a diverse range of departments using such data—has also resulted in a shift to a more data-centric approach and the creation of Performance Books of Record (PBOR).

Key findings from the survey include:

• Data governance ranks equally with data management as a data integration need; this rise in prominence of data governance is a significant change in attitude.
• Sixty percent of those surveyed recognize the need to improve data quality; data remains heavily fragmented and firms are therefore struggling to trust data.
• Of firms surveyed, 93 percent have at least basic data management of standardized reference and internal data; while improvements across data types need to be elevated, the biggest wish-list item is a single integrated solution.
• PBOR is a key focus area with performance and analytics, benchmark and indices, and counterparty data still needing the most standardization; the creation of a PBOR enables firms to break down data silos and step away from tactical data calculations.
• Reporting is still seen as a priority area for data management, particularly internal reporting; this is against a backdrop of poor data quality.
• There is strong momentum within firms to adhere to data governance policies and procedures (78 percent of organizations currently do this); however, only one in eight are both measuring and taking remedial action effectively.
• Lowering data costs is cited as a top-three priority; the cost of data in organizations continues to grow and firms are struggling to map data across the organization and manage it effectively.

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