I’ve been thinking a lot about regulation lately. We often see it as a hoop to jump through, but I’d like to pose an alternate view: What if the outcome of regulation could be used as an asset to our business, a tool to create more opportunities?
That is exactly what is happening with financial risk data. The consistency and completeness of data required by regulation has become a valuable asset. According to this paper, it offers an opportunity to add real business value to savvy banks and other financial institutions.
We now have access to vast quantities of business intelligence. What’s most interesting about this is the way it gives us the opportunity to analyse and interpret information to create new opportunities and ways of working.
This change can be revolutionary. It can provide an understanding of your business, as well as its cash flows and interdependencies, at a level never before possible. It provides an opportunity to take a strategic approach so that delivering value becomes a constant, achievable goal.
But how can we do this?
It’s easier than it seems.
First of all, show your stakeholders how access to new information can help the company grow through better data. This builds an organisation-wide appreciation for the systems that make data accessible.
Secondly, ensure that the applications holding the data are structured simply enough to actually make the data accessible and understandable to all levels of management. This is where the value of a more transparent and malleable data architecture is key.
This clear vision of what is known and unknown gives management control over a business in all areas. There has never been more clarity of assets held or insight into specific trading desks at investment banks.
At a time of cost cutting, investing data into the wider business is a route to growth-boosting productivity. We can now look to the future with confidence.
Howard Mather is a Principal Sales Consultant for Oracle Financial Services. He can be reached at howard.mather AT oracle.com.