Category Archives: Governance, Risk and Compliance

Dark Data in Government: Sounds Sinister

Dark Data in Government: Sounds Sinister

Dark Data in Government: Sounds Sinister

Anytime I read about something characterized as “dark”, my mind immediately jumps to a vision of something sneaky or sinister, something better left unsaid or undiscovered. Maybe I watched too many Alfred Hitchcock movies in my youth, who knows. However, when coupled with the word “data”, “dark” is anything BUT sinister. Sure, as you might agree, the word “undiscovered” may still apply, but, only with a more positive connotation.

To level set, let’s make sure you understand my definition of dark data. I prefer using visualizations when I can so, picture this: the end of the first Indiana Jones movie, Raiders of the Lost Ark. In this scene, we see the Ark of the Covenant, stored in a generic container, being moved down the aisle in a massive warehouse full of other generic containers. What’s in all those containers? It’s pretty much anyone’s guess. There may be a record somewhere, but, for all intents and purposes, the materials stored in those boxes are useless.

Applying this to data, once a piece of data gets shoved into some generic container and is stored away, just like the Arc, the data becomes essentially worthless. This is dark data.

Opening up a government agency to all its dark data can have significant impacts, both positive and negative. Here are couple initial tips to get you thinking in the right direction:

  1. Begin with the end in mind – identify quantitative business benefits of exposing certain dark data.
  2. Determine what’s truly available – perform a discovery project – seek out data hidden in the corners of your agency – databases, documents, operational systems, live streams, logs, etc.
  3. Create an extraction plan – determine how you will get access to the data, how often does the data update, how will handle varied formats?
  4. Ingest the data – transform the data if needed, integrate if needed, capture as much metadata as possible (never assume you won’t need a metadata field, that’s just about the time you will be proven wrong).
  5. Govern the data – establish standards for quality, access controls, security protections, semantic consistency, etc. – don’t skimp here, the impact of bad data can never really be quantified.
  6. Store it – it’s interesting how often agencies think this is the first step
  7. Get the data ready to be useful to people, tools and applications – think about how to minimalize the need for users to manipulate data – reformatting, parsing, filtering, etc. – to better enable self-service.
  8. Make it available – at this point, the data should be easily accessible, easily discoverable, easily used by people, tools and applications.

Clearly, there’s more to shining the light on dark data than I can offer in this post. If you’d like to take the next step to learning what is possible, I suggest you download the eBook, The Dark Data Imperative.

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Posted in Big Data, Data Warehousing, Enterprise Data Management, Governance, Risk and Compliance, Intelligent Data Platform, Public Sector | Tagged , , | Leave a comment

How Protected is your PHI?

I live in a very small town in Maine. I don’t spend a lot of time thinking about my privacy. Some would say that by living in a small town, you give up your right to privacy because everyone knows what everyone else is doing. Living here is a choice – for me to improve my family’s quality of life. Sharing all of the details of my life – not so much.

When I go to my doctor (who also happens to be a parent from my daughter’s school), I fully expect that any sort of information that I share with him, or that he obtains as a result of lab tests or interviews, or care that he provides is not available for anyone to view. On the flip side, I want researchers to be able to take my lab information combined with my health history in order to do research on the effectiveness of certain medications or treatment plans.

As a result of this dichotomy, Congress (in 1996) started to address governance regarding the transmission of this type of data. The Health Insurance Portability and Accountability Act of 1996 (HIPAA) is a Federal law that sets national standards for how health care plans, health care clearinghouses, and most health care providers protect the privacy of a patient’s health information. With certain exceptions, the Privacy Rule protects a subset of individually identifiable health information, known as protected health information or PHI, that is held or maintained by covered entities or their business associates acting for the covered entity. PHI is any information held by a covered entity which concerns health status, provision of health care, or payment for health care that can be linked to an individual.

Many payers have this type of data in their systems (perhaps in a Claims Administration system), and have the need to share data between organizational entities. Do you know if PHI data is being shared outside of the originating system? Do you know if PHI is available to resources that have no necessity to access this information? Do you know if PHI data is being shared outside your organization?

If you can answer yes to each of these questions – fantastic. You are well ahead of the curve. If not – you need to start considering solutions that can

I want to researchers to have access to medically relevant data so they can find the cures to some horrific diseases. I want to feel comfortable sharing health information with my doctor. I want to feel comfortable that my health insurance company is respecting my privacy. Now to get my kids to stop oversharing.

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Posted in Customers, Data Governance, Data masking, Data Privacy, Data Security, Governance, Risk and Compliance, Healthcare | Tagged , , , , , | Leave a comment

The CISO Challenge: Articulating Data Worth and Security Economics

A few years ago the former eBay’s CISO, Dave Cullinane, led a sobering coaching discussion on how to articulate and communicate the value of a security solution and its economics to a CISO’s CxO peers.

Why would I blog about such old news? Because it was a great and timeless idea. And in this age of the ‘Great Data Breach’, where CISOs need all the help they can get, I thought I would share it with y’all.

Dave began by describing how to communicate the impact of an attack from malware such as Aurora, spearfishing, stuxnet, hacktivision, and so on… versus the investment required to prevent the attack.  If you are an online retailer and your web server goes down because of a major denial of service attack, what does that cost the business?  How much revenue is lost every minute that site is offline? Enough to put you out of business? See the figure below that illustrates how to approach this conversation.

If the impact of a breach and the risk of losing business is high and the investment in implementing a solution is relatively low, the investment decision is an obvious one (represented by the yellow area in the upper left corner).

CISO Challenge

However, it isn’t always this easy, is it?  When determining what your company’s brand and reputation worth, how do you develop a compelling case?

Another dimension Dave described is communicating the economics of a solution that could prevent an attack based on the probability that the attack would occur (see next figure below).

CISO Challenge

For example, consider an attack that could influence stock prices?  This is a complex scenario that is probably less likely to occur on a frequent basis and would require a sophisticated multidimensional solution with an integrated security analytics solution to correlate multiple events back to a single source.  This might place the discussion in the middle blue box, or the ‘negotiation zone’. This is where the CISO needs to know what the CxO’s risk tolerances are and articulate value in terms of the ‘coin of the realm’.

Finally, stay on top of what the business is cooking up for new initiatives that could expose or introduce new risks.  For example, is marketing looking to spin up a data warehouse on Amazon Redshift? Anyone on the analytics team tinkering with Hadoop in the cloud? Is development planning to outsource application test and development activities to offshore systems integrators? If you are participating in any of these activities, make sure your CISO isn’t the last to know when a ‘Breach Happens’!

To learn more about ways you can mitigate risk and maintain data privacy compliance, check out the latest Gartner Data Masking Magic Quadrant.

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Posted in Data Governance, Data masking, Data Privacy, Data Security, Governance, Risk and Compliance | Tagged , , , , | Leave a comment

Imagine A New Sheriff In Town

As we renew or reinvent ourselves for 2015, I wanted to share a case of “imagine if” with you and combine it with the narrative of an American frontier town out West, trying to find a new Sheriff – a Wyatt Earp.  In this case the town is a legacy European communications firm and Wyatt and his brothers are the new managers – the change agents.

management

Is your new management posse driving change?

Here is a positive word upfront.  This operator has had some success in rolling outs broadband internet and IPTV products to residential and business clients to replace its dwindling copper install base.  But they are behind the curve on the wireless penetration side due to the number of smaller, agile MVNOs and two other multi-national operators with a high density of brick-and-mortar stores, excellent brand recognition and support infrastructure.  Having more than a handful of brands certainly did not make this any easier for our CSP.   To make matters even more challenging, price pressure is increasingly squeezing all operators in this market.  The ones able to offset the high-cost Capex for spectrum acquisitions and upgrades with lower-cost Opex for running the network and maximizing subscriber profitability, will set themselves up for success (see one of my earlier posts around the same phenomenon in banking).

Not only did they run every single brand on a separate CRM and billing application (including all the various operational and analytical packages), they also ran nearly every customer-facing-service (CFS) within a brand the same dysfunctional way.  In the end, they had over 60 CRM and the same number of billing applications across all copper, fiber, IPTV, SIM-only, mobile residential and business brands.  Granted, this may be a quite excessive example; but nevertheless, it is relevant for many other legacy operators.

As a consequence, their projections indicate they incur over €600,000 annually in maintaining duplicate customer records (ignoring duplicate base product/offer records for now) due to excessive hardware, software and IT operations.  Moreover, they have to stomach about the same amount for ongoing data quality efforts in IT and the business areas across their broadband and multi-play service segments.

Here are some more consequences they projected:

  • €18.3 million in call center productivity improvement
  • €790,000 improvement in profit due to reduced churn
  • €2.3 million reduction in customer acquisition cost
  • And if you include the fixing of duplicate and conflicting product information, add another €7.3 million in profit via billing error and discount reduction (which is inline with our findings from a prior telco engagement)

Despite major business areas not having contributed to the investigation and improvements being often on the conservative side, they projected a 14:1 return ratio between overall benefit amount and total project cost.

Coming back to the “imagine if” aspect now, one would ask how this behemoth of an organization can be fixed.  Well, it will take years but without management (in this case new managers busting through the door), this organization has the chance to become the next Rocky Mountain mining ghost town.

Busting into the cafeteria with new ideas & looking good while doing it?

Busting into the cafeteria with new ideas & looking good while doing it?

The good news is that this operator is seeing some management changes now.  The new folks have a clear understanding that business-as-usual won’t do going forward and that centralization of customer insight (which includes some data elements) has its distinct advantages.  They will tackle new customer analytics, order management, operational data integration (network) and next-best-action use cases incrementally. They know they are in the data, not just the communication business.  They realize they have to show a rapid succession of quick wins rather than make the organization wait a year or more for first results.  They have fairly humble initial requirements to get going as a result.

You can equate this to the new Sheriff not going after the whole organization of the three, corrupt cattle barons, but just the foreman of one of them for starters.  With little cost involved, the Sheriff acquires some first-hand knowledge plus he sends a message, which will likely persuade others to be more cooperative going forward.

What do you think? Is new management the only way to implement drastic changes around customer experience, profitability or at least understanding?

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Posted in Big Data, Business Impact / Benefits, CIO, CMO, Customer Acquisition & Retention, Customer Services, Customers, Data Governance, Data Integration, Data Quality, Enterprise Data Management, Governance, Risk and Compliance, Master Data Management, Operational Efficiency, Product Information Management, Telecommunications, Vertical | Tagged , , , , , , , , , | Leave a comment

Happy Holidays, Happy HoliData.

Happy Holidays, Happy HoliData

In case you have missed our #HappyHoliData series on Twitter and LinkedIn, I decided to provide a short summary of best practices which are unleashing information potential. Simply scroll and click on the case study which is relevant for you and your business. The series touches on different industries and use cases. But all have one thing in common: All consider information quality as key value to their business to deliver the right services or products to the right customer.

HappyHoliData_01 HappyHoliData_02 HappyHoliData_03 HappyHoliData_04 HappyHoliData_05 HappyHoliData_06 HappyHoliData_07 HappyHoliData_08 HappyHoliData_09 HappyHoliData_10 HappyHoliData_11 HappyHoliData_12 HappyHoliData_13 HappyHoliData_14 HappyHoliData_15 HappyHoliData_16 HappyHoliData_17 HappyHoliData_18 HappyHoliData_19 HappyHoliData_20 HappyHoliData_21 HappyHoliData_22 HappyHoliData_23 HappyHoliData_24

Thanks a lot to all my great teammates, who made this series happen.

Happy Holidays, Happy HoliData.

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Posted in B2B, B2B Data Exchange, Banking & Capital Markets, Big Data, CIO, CMO, Customers, Data Governance, Data Quality, Enterprise Data Management, Financial Services, Governance, Risk and Compliance, Manufacturing, Master Data Management, PaaS, PiM, Product Information Management, Retail, SaaS | Tagged , | Leave a comment

Data Visibility From the Source to Hadoop and Beyond with Cloudera and Informatica Integration

Data Visibility From the Source to Hadoop

Data Visibility From the Source to Hadoop

This is a guest post by Amr Awadallah, Founder, CTO at Cloudera, Inc.

It takes a village to build mainstream big data solutions. We often get so caught up in Hadoop use cases and customer successes that sometimes we don’t talk enough about the innovative partner technologies and integrations that enable our customers to put the enterprise data hub at the core of their data architecture and innovate with confidence. Cloudera and Informatica have been working together to integrate our products to enable new levels of productivity and lower deployment and production risk.

Going from Hadoop to an enterprise data hub, means a number of things. It means that you recognize the business value of capturing and leveraging all your data for exploration and analytics. It means you’re ready to make the move from Hadoop pilot project to production. And it means your data is important enough that it’s worth securing and making data pipelines visible. It’s the visibility layer, and in particular, the unique integration between Cloudera Navigator and Informatica that I want to focus on in this post.

The era of big data has ushered in increased regulations in a number of industries – banking, retail, healthcare, energy – most of which deal in how data is managed throughout its lifecycle. Cloudera Navigator is the only native end-to-end solution for governance in Hadoop. It provides visibility for analysts to explore data in Hadoop, and enables administrators and managers to maintain a full audit history for HDFS, HBase, Hive, Impala, Spark and Sentry then run reports on data access for auditing and compliance.The integration of Informatica Metadata Manager in the Big Data Edition and Cloudera Navigator extends this level of visibility and governance beyond the enterprise data hub.

Hadoop
Today, only Informatica and Cloudera provide end-to-end data lineage from source systems through Hadoop, and into BI/analytic and data warehouse systems. And you can view it from a single pane within Informatica.

This is important because Hadoop, and the enterprise data hub in particular, doesn’t function in a silo. It’s an integrated part of a larger enterprise-wide data management architecture. The better the insight into where data originated, where it traveled, who had access to it and what they did with it, the greater our ability to report and audit. No other combination of technologies provides this level of audit granularity.

But more so than that, the visibility Cloudera and Informatica provides our joint customers with the ability to confidently stand up an enterprise data hub as a part of their production enterprise infrastructure because they can verify the integrity of the data that undergirds their analytics. I encourage you to check out a demo of the Informatica-Cloudera Navigator integration at this link: http://infa.media/1uBpPbT

You can also check out a demo and learn a little more about Cloudera Navigator  and the Informatica integration in the recorded  TechTalk hosted by Informatica at this link:

http://www.informatica.com/us/company/informatica-talks/?commid=133311

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Posted in Big Data, Cloud Data Integration, Governance, Risk and Compliance, Hadoop | Tagged , , , , | Leave a comment

CFO Rising: CFO’s Show They Are Increasingly Business Oriented

The Rising CFO is Increasingly Business Oriented

CFO risingAt the CFO Rising West Conference on October 30th and 31st, there were sessions on managing capital expenditures, completing an IPO, and even managing margin and cash flow. However, the keynote presenters did not spend much of time on these topics. Instead, they focused on how CFOs need to help their firms execute better. Here is a quick summary of the suggestions made from CFOs in broadcasting, consumer goods, retail, healthcare, and medical devices.

The Modern CFO is Strategic

CFO risingThe Broadcasting CFO started his talk by saying he was not at the conference to share why CFOs need to move from being “bean counters to strategic advisors”. He said “let’s face it the modern CFO is a strategic CFO”. Agreeing with this viewpoint, the Consumer Goods CFO said that finance organizations have a major role to play in business transformation. He said that finance after all is the place to drive corporate improvement as well as business productivity and business efficiency.

CFOs Talked About Their Business’ Issues

CFO risingThe Retailer CFO talked like he was a marketing person. He said retail today is all about driving a multichannel customer experience. To do this, finance increasingly needs to provide real business value. He said, therefore, that data is critical to the retailer’s ability to serve customers better. He claimed that customers are changing how they buy, what they want to buy, and when they want to buy. We are being disrupted and it is better to understand and respond to these trends. We are trying, therefore, to build a better model of ecommerce.

Meanwhile, the Medical Devices CFO said that as a supplier to medical device vendors “what we do is compete with our customers engineering staffs”. And the Consumer Goods CFO added the importance of finance driving sustained business transformation.

CFOs Want To Improve Their Business’ Ability To Execute

CFO risingThe Medical Devices CFO said CFOs need to look for “earlier execution points”. They need to look for the drivers of behavior change. As a key element of this, he suggested that CFOs need to develop “early warning indicators”. He said CFOs need to actively look at the ability to achieve objectives. With sales, we need to ask what deals do we have in the pipe? At what size are these deals? And at what success rate will these deals be closed? Only with this information, can the CFO derive an expected company growth rate. He then asked CFOs in the room to identify themselves. With their hands in the air, he asked them are they helping to create a company that executes or not. He laid down the gauntlet for the CFOs in the room by then asserting that if you are not creating a company that executes then are going to be looking at cutting costs sooner rather than later.

The retailer CFO agreed with this CFO. He said today we need to focus on how to win a market. We need to be asking business questions including:

  • How should we deploy resources to deliver against our firm’s value proposition?
  • How do we know when we win?

CFOs Claim Ownership For Enterprise Performance Measurement

Data AnalysisThe Retail CFO said that finance needs to own “the facts for the organization”—the metrics and KPIs. This is how he claims CFOs will earn their seat at the CEOs table. He said in the past the CFO have tended to be stoic, but this now needs to change.

The Medical Devices CFO agreed and said enterprises shouldn’t be tracking 150 things—they need to pare it down to 12-15 things. They need to answer with what you measure—who, what, and when. He said in an execution culture people need to know the targets. They need measurable goals. And he asserted that business metrics are needed over financial metrics. The Consumer Goods CFO agreed by saying financial measures alone would find that “a house is on fire after half the house had already burned down”. The Healthcare CFO picked up on this idea and talked about the importance of finance driving value scorecards and monthly benchmarks of performance improvement. The broadcaster CFO went further and suggested the CFO’s role is one of a value optimizer.

CFOs Own The Data and Drive a Fact-based, Strategic Company Culture

FixThe Retail CFOs discussed the need to drive a culture of insight. This means that data absolutely matters to the CFO. Now, he honestly admits that finance organizations have not used data well enough but he claims finance needs to make the time to truly become data centric. He said I do not consider myself a data expert, but finance needs to own “enterprise data and the integrity of this data”. He said as well that finance needs to ensure there are no data silos. He summarized by saying finance needs to use data to make sure that resources are focused on the right things; decisions are based on facts; and metrics are simple and understandable. “In finance, we need use data to increasingly drive business outcomes”.

CFOs Need to Drive a Culture That Executes for Today and the Future

Honestly, I never thought that I would hear this from a group of CFOs. The Retail CFO said we need to ensure that the big ideas do not get lost. We need to speed-up the prosecuting of business activities. We need to drive more exponential things (this means we need to position our assets and resources) and we need, at the same time, to drive the linear things which can drive a 1% improvement in execution or a 1% reduction in cost. Meanwhile, our Medical Device CFO discussed the present value, for example, of a liability for rework, lawsuits, and warranty costs. He said that finance leaders need to ensure things are done right today so the business doesn’t have problems a year from today. “If you give doing it right the first time a priority, you can reduce warranty reserve and this can directly impact corporate operating income”.

CFOs need to lead on ethics and compliance

The Medical Devices CFO said that CFOs, also, need to have high ethics and drive compliance. The Retail CFO discussed how finance needs to make the business transparent. Finance needs to be transparent about what is working and what is not working. The role of the CFO, at the same time, needs to ensure the integrity of the organization. The Broadcaster CFO asserted the same thing by saying that CFOs need to take a stakeholder approach to how they do business.

Final remarks

In whole, CFOs at CFO Rising are showing the way forward for the modern CFOs. This CFO is all about the data to drive present and future performance, ethics and compliance, and business transparency. This is a big change from the historical controller approach and mentality. I once asked a boss about what I needed to be promoted to a Vice President; my boss said that I needed to move from a technical specialist to a business person. Today’s CFOs clearly show that they are a business person first.

Related links

Solution Brief: The Intelligent Data Platform

Related Blogs
CFOs Move to Chief Profitability Officer
CFOs Discuss Their Technology Priorities
The CFO Viewpoint upon Data
How CFOs can change the conversation with their CIO?
New type of CFO represents a potent CIO ally
Competing on Analytics
The Business Case for Better Data Connectivity
Twitter: @MylesSuer

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Posted in Data Quality, General, Governance, Risk and Compliance, Healthcare | Tagged , , , | Leave a comment

If Data Projects Weather, Why Not Corporate Revenue?

Every fall Informatica sales leadership puts together its strategy for the following year.  The revenue target is typically a function of the number of sellers, the addressable market size and key accounts in a given territory, average spend and conversion rate given prior years’ experience, etc.  This straight forward math has not changed in probably decades, but it assumes that the underlying data are 100% correct. This data includes:

  • Number of accounts with a decision-making location in a territory
  • Related IT spend and prioritization
  • Organizational characteristics like legal ownership, industry code, credit score, annual report figures, etc.
  • Key contacts, roles and sentiment
  • Prior interaction (campaign response, etc.) and transaction (quotes, orders, payments, products, etc.) history with the firm

Every organization, no matter if it is a life insurer, a pharmaceutical manufacturer, a fashion retailer or a construction company knows this math and plans on getting somewhere above 85% achievement of the resulting target.  Office locations, support infrastructure spend, compensation and hiring plans are based on this and communicated.

data revenue

We Are Not Modeling the Global Climate Here

So why is it that when it is an open secret that the underlying data is far from perfect (accurate, current and useful) and corrupts outcomes, too few believe that fixing it has any revenue impact?  After all, we are not projecting the climate for the next hundred years here with a thousand plus variables.

If corporate hierarchies are incorrect, your spend projections based on incorrect territory targets, credit terms and discount strategy will be off.  If every client touch point does not have a complete picture of cross-departmental purchases and campaign responses, your customer acquisition cost will be too high as you will contact the wrong prospects with irrelevant offers.  If billing, tax or product codes are incorrect, your billing will be off.  This is a classic telecommunication example worth millions every month.  If your equipment location and configuration is wrong, maintenance schedules will be incorrect and every hour of production interruption will cost an industrial manufacturer of wood pellets or oil millions.

Also, if industry leaders enjoy an upsell ratio of 17%, and you experience 3%, data (assuming you have no formal upsell policy as it violates your independent middleman relationship) data will have a lot to do with it.

The challenge is not the fact that data can create revenue improvements but how much given the other factors: people and process.

Every industry laggard can identify a few FTEs who spend 25% of their time putting one-off data repositories together for some compliance, M&A customer or marketing analytics.  Organic revenue growth from net-new or previously unrealized revenue is what the focus of any data management initiative should be.  Don’t get me wrong; purposeful recruitment (people), comp plans and training (processes) are important as well.  Few people doubt that people and process drives revenue growth.  However, few believe data being fed into these processes has an impact.

This is a head scratcher for me. An IT manager at a US upstream oil firm once told me that it would be ludicrous to think data has a revenue impact.  They just fixed data because it is important so his consumers would know where all the wells are and which ones made a good profit.  Isn’t that assuming data drives production revenue? (Rhetorical question)

A CFO at a smaller retail bank said during a call that his account managers know their clients’ needs and history. There is nothing more good data can add in terms of value.  And this happened after twenty other folks at his bank including his own team delivered more than ten use cases, of which three were based on revenue.

Hard cost (materials and FTE) reduction is easy, cost avoidance a leap of faith to a degree but revenue is not any less concrete; otherwise, why not just throw the dice and see how the revenue will look like next year without a central customer database?  Let every department have each account executive get their own data, structure it the way they want and put it on paper and make hard copies for distribution to HQ.  This is not about paper versus electronic but the inability to reconcile data from many sources on paper, which is a step above electronic.

Have you ever heard of any organization move back to the Fifties and compete today?  That would be a fun exercise.  Thoughts, suggestions – I would be glad to hear them?

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Posted in Banking & Capital Markets, Big Data, Business Impact / Benefits, Business/IT Collaboration, Data Governance, Data Integration, Data Quality, Data Warehousing, Enterprise Data Management, Governance, Risk and Compliance, Master Data Management, Product Information Management | Tagged , | 2 Comments

Do We Really Need Another Information Framework?

Do We Really Need Another Information Framework?

The EIM Consortium is a group of nine companies that formed this year with the mission to:

Promote the adoption of Enterprise Information Management as a business function by establishing an open industry reference architecture in order to protect and optimize the business value derived from data assets.”

That sounds nice, but we do really need another framework for EIM or Data Governance? Yes we do, and here’s why. (more…)

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Posted in CIO, Data Governance, Data Integration, Enterprise Data Management, Governance, Risk and Compliance, Integration Competency Centers, Uncategorized | Tagged , , | Leave a comment

Keeping Information Governance Relevant

Gartner’s official definition of Information Governance is “…the specification of decision rights and an accountability framework to encourage desirable behavior in the valuation, creation, storage, use, archival and deletion of information. It includes the processes, roles, standards, and metrics that ensure the effective and efficient use of information in enabling a business to achieve its goals.” It therefore looks to address important considerations that key stakeholders within an enterprise face.

A CIO of a large European bank once asked me – “How long do we need to keep information?”

Keeping Information Governance relevant

Data-Cartoon-2This bank had to govern, index, search, and provide content to auditors to show it is managing data appropriately to meet Dodd-Frank regulation. In the past, this information was retrieved from a database or email. Now, however, the bank was required to produce voice recordings from phone conversations with customers, show the Reuters feeds coming in that are relevant, and document all appropriate IMs and social media interactions between employees.

All these were systems the business had never considered before. These environments continued to capture and create data and with it complex challenges. These islands of information that seemingly do not have anything to do with each other, yet impact how that bank governs itself and how it saves any of the records associated with trading or financial information.

Coping with the sheer growth is one issue; what to keep and what to delete is another. There is also the issue of what to do with all the data once you have it. The data is potentially a gold mine for the business, but most businesses just store it and forget about it.

Legislation, in tandem, is becoming more rigorous and there are potentially thousands of pieces of regulation relevant to multinational companies. Businesses operating in the EU, in particular, are affected by increasing regulation. There are a number of different regulations, including Solvency II, Dodd-Frank, HIPAA, Gramm-Leach-Bliley Act (GLBA), Basel III and new tax laws. In addition, companies face the expansion of state-regulated privacy initiatives and new rules relating to disaster recovery, transportation security, value chain transparency, consumer privacy, money laundering, and information security.

Regardless, an enterprise should consider the following 3 core elements before developing and implementing a policy framework.

Whatever your size or type of business, there are several key processes you must undertake in order to create an effective information governance program. As a Business Transformation Architect, I can see 3 foundation stones of an effective Information Governance Program:

Assess Your Business Maturity

Understand the full scope of requirements on your business is a heavy task. Assess whether your business is mature enough to embrace information governance. Many businesses in EMEA do not have an information governance team already in place, but instead have key stakeholders with responsibility for information assets spread across their legal, security, and IT teams.

Undertake a Regulatory Compliance Review

Understand the legal obligations to your business are critical in shaping an information governance program. Every business is subject to numerous compliance regimes managed by multiple regulatory agencies, which can differ across markets. Many compliance requirements are dependent upon the numbers of employees and/or turnover reaching certain limits. For example, certain records may need to be stored for 6 years in Poland, yet the same records may need to be stored for 3 years in France.

Establish an Information Governance Team

It is important that a core team be assigned responsibility for the implementation and success of the information governance program. This steering group and a nominated information governance lead can then drive forward operational and practical issues, including; Agreeing and developing a work program, Developing policy and strategy, and Communication and awareness planning.

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