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The Chief Data Officer's Agenda: The Need for Information Governance Controls

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Information professionals are working in a proverbial fishbowl, always under watchful scrutiny. Increases in regulations, data standards, and competitive environments, coupled with an explosion of …

Information professionals are working in a proverbial fishbowl, always under watchful scrutiny. Increases in regulations, data standards, and competitive environments, coupled with an explosion of information and data assets across the organization, have led to significant challenges in the world of information. Financial regulations such as Basel III are redefining the control landscape. The Affordable Care Act, and extensions within HIPPA, are redefining Healthcare. Data Governance is maturing into Information Governance based on further expansions into business operations, legal, records management, information security and an awareness of the need to focus on derived information over pure data. Against this backdrop, CXO executives are demanding more and more controls prior to automating financial or industry reporting to provide assurance that information is accurate. This webinar explores the nature of Information Governance controls and how the controls can lead to operational efficiencies and reduction of multiple enterprise risk factors.

This webinar will provide an overview of:

The emergence of Information Governance
The nature of typical information landscape across an organization
The definition and need for Information Governance Controls
How Information Governance Controls drive operational efficiency and risk reduction
Critical success factors to integrated controls into overall Information Governance frameworks

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  • 1. www.cdovision.com Moderator: Tony Shaw CEO, DATAVERSITY Speaker: Steve Zagoudis CEO MetaGovernance Inc. #CDOVision
  • 2. The Need for Information Governance Controls Steven Zagoudis MetaGovernance® Incorporated
  • 3. 2 • Information as a corporate asset • Regulations requiring content integrity • Competitive pressures for efficiency • Governance has moved to the Boardroom Corporate Trends Corporate Information Issues MetaGovernance Incorporated. All Rights Reserved. 2014
  • 4. Corporate Data and Information Issues 3 Corporate System SALES=$4.6M Operational System SALES=$4.5M Sales System SALES=$4.7M Overlapping Transaction Systems Internal Reports and External Disclosures that don’t agree Spreadsheets and Access Data Bases Inconsistent Data Repositories MetaGovernance Incorporated. All Rights Reserved. 2014
  • 5. Many Versions: Which is Correct? 4 Sales ReportRegulatory Reports SEC Reports Operational Reports Spreadsheet $4.5M $4.4M $4.6M $4.7M Corporate System SALES=$4.6M Operational System SALES=$4.5M Sales System SALES=$4.7M General Ledger SALES=$4.6M Data Warehouse SALES=$4.5M SALES=$4.4M MetaGovernance Incorporated. All Rights Reserved. 2014
  • 6. Status Quo Is No Longer Sustainable MetaGovernance Incorporated. All Rights Reserved. 2014 5 Sarbanes Oxley Basel III Untrusted Data Warehouses Proliferation of Spreadsheets Unsustainable Data Governance Redundant IT Systems Audit Standards Affordable Care Act TIME DATAQUALITY HIPPA Medicare Standards Dodd-Frank Basel II Increasing Oversight
  • 7. Evolving Disciplines Move Closer to the Business 6 Manual Controls Spreadsheet Controls Data Controls Reporting- Layer Controls Enterprise Data Management (1995+) Data Governance (2005+) Enterprise Information Management (2008+) Information Governance (2012+) Metadata Governance (2014+) Emerging Focus Information Management Trends Data Control Trends MetaGovernance Incorporated. All Rights Reserved. 2014
  • 8. 7 Data ContextGovernance Data Governance Database Data Definitions Tables Columns Systems Data Quality Domain Values Data Models Big Data Data Stewards Data Controls Data Procedures Data Policies Data Ownership Data Standards Operational Units KPIs CSFs Finance Accounting Reporting Disclosure Metadata Data Values MetaGovernance Incorporated. All Rights Reserved. 2014
  • 9. The Scope of Information Governance is much broader than a focus on data assets • Data are raw assets produced and available for consumption by business operations. • Information is created by putting this raw data into business context (via the Business Architecture). • Information become the true asset of the organization. • Information Governance is the control and oversight of these information assets. • Information is the true knowledge base of the organization that must be protected and managed. • There may someday be an evolution to Knowledge Governance in line with the works of Dee Hock. 8MetaGovernance Incorporated. All Rights Reserved. 2014
  • 10. 9 Content ContextGovernance Database Data Definitions Tables Columns Systems Data Quality Domain Values Data Models Big Data Data Stewards Data Controls Data Procedures Data Policies Data Ownership Data Standards Operational Units KPIs CSFs Finance Accounting Reporting Disclosure Metadata Information Governance Data Values Data Governance Legal Compliance Security Retention eDiscovery Records Email Derived Info Social Media UDAs Regulations Information Controls Audit Privacy Value Mapping Archives Transparency Automation Decision Support Digital Signatures Risk Documents Websites DisclosuresPatents MetaGovernance Incorporated. All Rights Reserved. 2014
  • 11. What is needed is a clear understanding of the sources and uses of information across the enterprise… 10MetaGovernance Incorporated. All Rights Reserved. 2014
  • 12. Key Information Governance Terms Information Steward (Owner/SME) Information Delegate Information Custodian Information Consumer 11Copyright MetaGovernance 2014.All Rights Reserved
  • 13. The Information Governance Awareness Map 12 MetaGovernance Incorporated. All Rights Reserved. 2014
  • 14. 13 The need for Information Governance Controls – Inconsistent data sources across departments DepartmentalUsage Business Applications Business Application Databases (Transactional) Business Application Databases (Reporting) Phase Loan System Credit Underwriting System General Ledger System Loan DB Credit DB Loan DW Credit DW Enterprise DW Accounting .XLS • Credit • Accounting • Treasury • Credit • Risk • Compliance • Marketing • Sales • Audit • Accounting GL DB Manual Updates Applied MetaGovernance Incorporated. All Rights Reserved. 2014
  • 15. 14 The need for Information Governance Controls – Inadequate Controls DepartmentalUsage Business Applications Business Application Databases (Transactional) Business Application Databases (Reporting) Phase Loan System Credit Underwriting System General Ledger System Loan DB Credit DB Loan DW Credit DW Enterprise DW Accounting .XLS • Credit • Accounting • Treasury • Credit • Risk • Compliance • Marketing • Sales • Audit • Accounting GL DB 1 3 2 4 5 Control Descriptions: 1. Data movement job status only – Pass/Fail 2. Record counts Loan-to-EDW 3. Record counts Credit-to-EDW 4. Data movement job status only – Pass/Fail 5. Account totals – GL-to-EDW MetaGovernance Incorporated. All Rights Reserved. 2014
  • 16. What is wrong with this picture? • Departments are pulling data from different systems. • Data is inconsistent because manual updates are being applied “downstream”. • Departments get different views of the data depending upon from where they pull the data. • Controls between the system are not validating content – only record counts. • Some data flows have no controls implemented. • Reports and disclosures will be inconsistent across the enterprise. 15MetaGovernance Incorporated. All Rights Reserved. 2014
  • 17. The Popular (Mis)conception of Automated Reporting Data Warehouse Warehouse Updates Call Reports Income Tax Filings SEC Filings General Ledger Loan 1 Loan 2 CRM Derivative Data Sources 16MetaGovernance Incorporated. All Rights Reserved. 2014
  • 18. A different story comes to light when following the true Information Flow of the Company Data Warehouse Warehouse Updates SEC Filings 17 General Ledger Loan 1 Loan 2 CRM Derivative Data Sources Call Reports Income Tax Filings Data Extracts MetaGovernance Incorporated. All Rights Reserved. 2014
  • 19. A different story comes to light when following the true Information Flow of the Company Data Warehouse Warehouse Updates SEC Filings 18 General Ledger Loan 1 Loan 2 CRM Derivative Data Sources Call Reports Income Tax Filings Data Extracts MetaGovernance Incorporated. All Rights Reserved. 2014
  • 20. Source Data Base Spreadsheet Spreadsheet Marketing Operations Accounting A Regulators and Auditors Spreadsheet Checkersand Verifiers 19 B C Data Mart Data Mart Spreadsheet Spreadsheet GL Spreadsheet Spreadsheet Spreadsheet A B C IT Data Patches Executive Management MetaGovernance Incorporated. All Rights Reserved. 2014
  • 21. A Reconciliation Control Framework® is needed to break this cycle of risk and waste… 20MetaGovernance Incorporated. All Rights Reserved. 2014
  • 22. 21 The need for Information Governance Controls – Improved Controls to verify meaningful content DepartmentalUsage Business Applications Business Application Databases (Transactional) Business Application Databases (Reporting) Phase Loan System Credit Underwriting System General Ledger System Loan DB Credit DB Loan DW Credit DW Enterprise DW Accounting .XLS • Credit • Accounting • Treasury • Credit • Risk • Compliance • Marketing • Sales • Audit • Accounting GL DB 1 3 2 4 5 Control Descriptions: 1. Accrued Interest, Outstanding Principle Loan-to-Loan DW 2. Accrued Interest, Outstanding Principle Loan-to-EDW 3. Total Outstanding Exposure, Customer LTV value Credit-to-Credit DW 4. Total Outstanding Exposure, Customer LTV value Credit-to-EDW 5. Account totals, GL Hierarchy totals – GL-to-EDW 7 6 MetaGovernance Incorporated. All Rights Reserved. 2014
  • 23. A Reconciliation Control Framework® Transactional Systems (Sub-ledgers) “A” General Ledger System “B” Reporting Systems (Data Warehouses) “C”B=C? Total Loan Balance = $145,975,550.00 Total Loans by Division East = $125,000,300.00 West = $ 20,975,250.00 Total = $145,975,550.00 Account 12124-321-01 (Loans) Balance = $145,975,550.00 MetaGovernance Incorporated. All Rights Reserved. 2014
  • 24. Information Governance Controls Validate Content Across the Entire Information Flow Data Warehouse Warehouse Updates SEC Filings 23 General Ledger Loan 1 Loan 2 CRM Derivative Data Sources Call Reports Income Tax Filings Sub-Ledger Systems General Ledger System Financial Data Warehouse Control Status Loans $45,123,567 $45,123,567 $45,123,567 Balanced Payments $66,543,123 $65,876,891 $67,543,888 Variance Investments $100,321,111 $100,321,111 $100,321,111 Balanced Data Corrections MetaGovernance Incorporated. All Rights Reserved. 2014
  • 25. 24 • Automation of Manual Data Validation • Elimination of Redundant Reporting Efforts • Reduced Remediation Costs • Automated Software Testing Resulting Gains in Operational Efficiency… MetaGovernance Incorporated. All Rights Reserved. 2014
  • 26. 25 • Business Decisions Based on Good Data • Financial Statement Accuracy • Clean Audit Reports • Improved Regulatory Rating • Reduced Reputation Risk RISK MANAGEMENT …and Reduction in Enterprise Risk MetaGovernance Incorporated. All Rights Reserved. 2014
  • 27. For additional information contact: Steven Zagoudis stevez@metagovernance.com (404) 593-1601 www.metagovernance.com Questions? 26