Quick Wins from Matching to a Reference Data Provider Hierarchy

Using the core master data capability of matching will give you automation that is critical to meet the following key principles:

  1. Timeliness: Matching automation allows you quickly identify new clients and where they introduce risk across the different tranches. This keeps your aggregation reporting up to date.
  2. Accuracy: Reference data providers mitigate the data quality issues introduced from data entry short cuts or portfolios added through acquisition.

Completeness -> Segmentation

Merging your customers with a reference data set gives you an incredible level of enrichment that covers the principle to capture and aggregate risk across the slices BCBS 239 identifies:

  • Parent Relationships: Legal ownership and operational control
  • Industry: NAICS, SIC
  • Geography: Country, Region, State, City, Lat/Long/Radius
  • Size: Global employees, employees at the location, sales in dollars
  • Demographics: Minority ownership

Governance & Infrastructure -> Automation & Adaptability

Master data solutions allow for adaptability: New sources, new customers, to data attributes. When designed by an experienced team, these solutions become the core for auditable client information and governance meta data to meet the pillars of BCBS239. Even though global systemically important banks are the focus right now, risk aggregation and the principles in BCBS 239 will be applied to a broader group as national level regulators focus their attention on domestic banks. Understanding how de-duplication and hierarchy enrichment can accelerate (and automate) risk reporting will reduce fear of the unknown within your organization and may just uncover foundational IT assets already in place, ready to be leveraged in a new way.