Data governance model for compliance

Data governance model for compliance

For a Tier 1 Bank in Belgium

The challenge

In 2013, the Basel Committee laid out the BCBS 239 principles for banks. The aim was to strengthen risk data aggregation capabilities and internal risk reporting practices. However, many banks are still struggling to comply with those principles because of a lack of an efficient data architecture. The client was looking for the right infrastructure and technology to implement their data governance requirements and to improve data lineage efficiency in order to adhere to the BCBS 239 principles.

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How b.fine helped

The client needed a partner who could help them address the challenge of complying with the BCBS 239 principles and implement the necessary infrastructure. b.fine assisted the client in two ways. First, we determined the best technology to employ in the client’s infrastructure. Our senior b.fine consultants analyzed the inefficiencies in the existing system and the client’s needs in order to define a “future-proof” solution. Based on this analysis, we selected Collibra as the data governance technology.

Collibra selected to support data governance

Collibra has proven itself to be very efficient in supporting financial institutions in complying with regulations such as the BCBS 239 principles. It contains various features, such as the diagram feature, which can generate views of any end-to-end data lineage. In some cases, data flows at banks are simple in structure. In the reality of modern banking, however, the same piece of information travels through countless tables, functions, filters, combinations and software suites. These entangled relationships make the whole process very hard to visualize, as well as making it error-prone and difficult to follow when an agent is asked to shift between different models.

Saving time with automated data lineage

Being able to report on the lineage of several key data elements with Collibra fits perfectly into the scope of COREP and ALM. The idea behind data lineage with Collibra is to track the path that brings the raw data in a master source to the final regulatory report. In this way, we were able to implement a solution that enhanced data traceability since Collibra extracts lineage from various data sources automatically and keeps it up to date at all times.

As a result, the IT department saw time savings of 95% over manually mapping lineage. In addition, since BCBS 239 is an annual regulation, having current and consistent data is crucial to a quality report. BCBS 239 also requires automated reporting; regulators no longer accept excel spreadsheets. So, with automated data lineage, banks can comply with the BCBS 239 regulations while also freeing up their IT department’s time to focus on strategic initiatives.

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