Data governance model for compliance

QIS – Basel IV/finalisation of Basel III reforms

For a Tier 1 Bank in Belgium

The challenge

In 2013 the Basel Committee determined the BCBS 239 principles for banks. The purpose was to strenghten risk data aggregation capabilities and internal risk reporting practices. However, many banks are struggling to comply with those principles because of a lack or efficient data architecture. This client was looking for the right infrastructure and technology to implement for data governance and improve the efficiency of data lineage to adhere to the BCBS 239 principles.
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How b.fine supports the client

The client needed a partner who could help them address the challenge of complying with the BCBS 239 principles and implement the necessary infrastructure to do so. b.fine assisted the client in two way. First, we determined the technology needed to implement in the client’s infrastructure. Our senior b.fine consultants analyzed the inefficiencies of the existing system and the needs of the client to come up with a solution that will hold up in the future. Based on this analysis, we selected Collibra as the data governance technology for this project. 


Collibra to support data governance

Collibra has proven itself to be very efficient in supporting financial institutions in complying with regulations like the BCBS 239 principles. It contains different features, such as the diagram feature, which comes in handy since it generates visualizations of any end-to-end lineage. In some cases, the data flow at banks has a simple 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, error-prone, and difficult to follow by an agent that is requested to shift among different models. 


Saving time with automated data lineage

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

As a result, this saves the IT department a significant amount of time in manual mapping lineage. This automated capability saves 95% of IT’s time manually mapping lineage. In addition, since BCBS-239 is an annual regulation, having current and consistent data is crucial for creating a quality report. BCBS-239 also requires automated reporting; regulators no longer accept excel spreadsheets. Thus, with automated data lineage, banks can follow the regulations of BCBS-239, while also freeing up IT’s time to focus on strategic initiatives.

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