Business Intelligence Lowdown: Keeping data safe and maintaining operational security

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July 18, 2005

Keeping data safe and maintaining operational security

Data quality has to match up with the exacting standards that governing organizations set, particularly, financial institutions, where collecting and studying loss data is a high priority activity. Loss data is important with respect to Operational Risk and the development of regulatory capital requirements. Even though data loss is a big risk that financial institutions face, it can be controlled. The first step is to educate the staff, be it executive, managerial, IT, etc. Back-up mechanisms, disaster-recovery plans, and, proper training for the end users is essential. Human error is frequently responsible for data loss, which can be categorized as occurring due to not following procedures or lack of education. For a better understanding of Operational Risk, financial institutions should share the loss data and have a common set of metrics and definitions. Operational Risk Management involves data tracking, collection, and reporting so that the key risk indicators are identified with the tracking and monitoring of historical and current data. Businessintelligence reports:

However, the main challenge for the banks in the coming months will be to spot and locate the required data and build up a data storehouse or data warehouse for storing the ready data for analysis. Moreover, banks must ensure effectual integration of different risk types and accurate computation of the various risk measures.

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July 18, 2005 in Data Quality | Permalink