Creating a Data Governance Framework for Solvency II<br />Copyright © 2011 DataFlux Corporation<br />All rights reserved<b...
A combination of Technology, Methodology & Services<br />Developed by DataFlux through working with 10 insurers on early-s...
DataFlux fitting into the Solvency II data landscape<br />Solvency II<br />Modelling<br />Data<br />Sources<br />Regulator...
Completeness
Appropriateness</li></ul>correction<br />
DataFlux fitting into the Solvency II data landscape<br />Solvency II<br />Modelling<br />Data<br />Sources<br />Regulator...
Completeness
Appropriateness</li></ul>correction<br />
DataFlux Solvency II Data Governance Framework - Methodology<br />6-Step Approach to measuring & reporting Accuracy, Appro...
DataFlux Solvency II Data Governance Framework - Methodology<br />Assess data landscape – Portfolios, Risk domains<br />Id...
1. Define<br />DataFlux Solvency II Data Governance Framework - Methodology<br />Assess data landscape – Portfolios, Risk ...
Collaboration tool for business & I.T. users<br />Document the data dictionary<br />Promotes auditability<br />Link the di...
2. Design<br />DataFlux Solvency II Data Governance Framework - Methodology<br />Verify Data Dictionary against data sourc...
DataFlux Solvency II Data Governance Framework - Methodology<br />
3. Apply<br />DataFlux Solvency II Data Governance Framework - Methodology<br />Populate staging area<br />Apply data gove...
Retrieve data from sources and populate into staging area
Apply data governance checks
“Data Governance Gateway”
Apply business rules against source data
Populate metrics repository
Store the business rules results in repository
Score the results of applying the business rules according to Appropriateness, Accuracy and Completeness
Aggregate data for different reporting levels
Productionise processes
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Creating A Solvency II Data Governance Framework

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Transcript of "Creating A Solvency II Data Governance Framework"

  1. 1. Creating a Data Governance Framework for Solvency II<br />Copyright © 2011 DataFlux Corporation<br />All rights reserved<br />
  2. 2. A combination of Technology, Methodology & Services<br />Developed by DataFlux through working with 10 insurers on early-stage Solvency II Data Governance initiatives<br />The purpose is to provide both the technology required for Solvency II Data Governance and also a starter kit of examples built on a best practice approach<br />What is the DataFlux Solvency II Data Governance Framework?<br />
  3. 3. DataFlux fitting into the Solvency II data landscape<br />Solvency II<br />Modelling<br />Data<br />Sources<br />Regulatory Reporting<br />calculation engine<br />Data Quality Reporting<br />Data Governance Gateway<br />Data Preparation<br />Data Assessment<br />Capital Adequacy Reporting<br />Risk Reporting<br />Solvency II Staging Area<br />Data Risk Assessment:<br /><ul><li>Accuracy
  4. 4. Completeness
  5. 5. Appropriateness</li></ul>correction<br />
  6. 6. DataFlux fitting into the Solvency II data landscape<br />Solvency II<br />Modelling<br />Data<br />Sources<br />Regulatory Reporting<br />calculation engine<br />Data Quality Reporting<br />Data Governance Gateway<br />Data Preparation<br />Data Assessment<br />Capital Adequacy Reporting<br />Risk Reporting<br />Solvency II Staging Area<br />Data Risk Assessment<br /><ul><li>Accuracy
  7. 7. Completeness
  8. 8. Appropriateness</li></ul>correction<br />
  9. 9. DataFlux Solvency II Data Governance Framework - Methodology<br />6-Step Approach to measuring & reporting Accuracy, Appropriateness & Completeness<br />Data Governance Project Document templates<br />Project Plan<br />Mapping documents<br />Design Brief<br />DataFlux Solvency II Data Governance examples<br />Dashboard with 3 reporting levels<br />DQ Business Rule examples<br />Data Job templates<br />Best practice Scoring Methodology for measuring data quality by dimensions<br />(Solvency II Data Governance does not include providing a Solvency II model, model scoring, SCR/MCR calculations, model reporting)<br />
  10. 10. DataFlux Solvency II Data Governance Framework - Methodology<br />Assess data landscape – Portfolios, Risk domains<br />Identify list of fields to calculate SCR/MCR (Data Dictionary)<br />Identify data governance requirements (Business Rules)<br />Verify Data Dictionary against data sources<br />Describe the data governance checks (Business Rules)<br />Design project landscape (including population of staging area)<br />Populate staging area<br />Apply data governance checks<br />Populate metrics repository<br />Report on results of data governance checks<br />Correct information (Manually and/or automatically)<br /> Perform a root cause analysis and initiate improvement/preventative actions<br />The 6-step approach<br />
  11. 11. 1. Define<br />DataFlux Solvency II Data Governance Framework - Methodology<br />Assess data landscape – Portfolios, Risk domains<br />Identify list of fields to calculate SCR/MCR (Data Dictionary)<br />Identify data governance requirements (Business Rules)<br />Key documents:<br />Landscape Diagram<br />Description and Process diagrams of source systems<br />Project Plan<br />Identify the components, resources and delivery timelines<br />Data Dictionary<br />Detail the table & field names/types within the systems in scope<br />Process document<br />Functional description of data governance approach for each Portfolio or risk category in scope<br />Mapping documents<br />Using the data dictionary, map the required fields through the different processes from source to target<br />Reporting Requirements <br />Contains the design of output reports<br />
  12. 12. Collaboration tool for business & I.T. users<br />Document the data dictionary<br />Promotes auditability<br />Link the dictionary to rules, processes and external documents<br />Track lineage<br />Business Data Network<br />DataFlux Solvency II Data Governance Framework - Methodology<br />
  13. 13. 2. Design<br />DataFlux Solvency II Data Governance Framework - Methodology<br />Verify Data Dictionary against data sources<br />Describe the data governance checks (Business Rules)<br />Design project landscape (including population of staging area)<br />Data Assessment<br />Verify assumptions made when creating the data dictionary<br />identify data issues that will be monitored using data governance checks<br />Design data governance checks (business rules) based on: <br />The detailed data requirements to support SCR/MCR calculation<br />The data requirements to assess confidence in terms of accuracy, appropriateness and completeness<br />Design the staging area support for:<br />Data Quality Assessments<br />Required metrics for data governance reports<br />Design processes to populate staging area<br />Migrate data to staging area<br />Transform, cleanse and standardise data<br />
  14. 14. DataFlux Solvency II Data Governance Framework - Methodology<br />
  15. 15. 3. Apply<br />DataFlux Solvency II Data Governance Framework - Methodology<br />Populate staging area<br />Apply data governance checks<br />Populate metrics repository<br /><ul><li>Populate staging area
  16. 16. Retrieve data from sources and populate into staging area
  17. 17. Apply data governance checks
  18. 18. “Data Governance Gateway”
  19. 19. Apply business rules against source data
  20. 20. Populate metrics repository
  21. 21. Store the business rules results in repository
  22. 22. Score the results of applying the business rules according to Appropriateness, Accuracy and Completeness
  23. 23. Aggregate data for different reporting levels
  24. 24. Productionise processes
  25. 25. Deploy to server
  26. 26. Set up processing schedules
  27. 27. Set up event triggers (e.g. email to Solvency II data stewards)</li></li></ul><li>3. Apply<br />DataFlux Solvency II Data Governance Framework - Methodology<br />Populate staging area<br />Apply data governance checks<br />Populate metrics repository<br />Data Job<br />Dimensions<br />
  28. 28. 3. Apply<br />DataFlux Solvency II Data Governance Framework - Methodology<br />Populate staging area<br />Apply data governance checks<br />Populate metrics repository<br />
  29. 29. 4. Publish<br />DataFlux Solvency II Data Governance Framework - Methodology<br />Report on results of data governance checks<br /><ul><li>Use DataFlux Report Server and/or Corporate Reporting Options</li></ul>Global Level<br />Dimension Level<br />Summary Level<br />Detail Level<br />
  30. 30. 4. Publish<br />DataFlux Solvency II Data Governance Framework - Methodology<br />Report on results of data governance checks<br />Company name and logo<br />Data Dimensions in scope will appear. <br />If out of scope, background will be grey<br />Business Unit list<br />Summary <br />Level<br />Data Feed list<br />Detail Level – <br />Appears when data is selected on Summary level<br />Data dimension list<br />
  31. 31. 5. Correct <br />DataFlux Solvency II Data Governance Framework - Methodology<br />Correct information (manually and/or automatically)<br />Solvency II allows for the correction or enhancement of data in order to improve its quality with regard to calculating SCR<br />These must be auditable and fully documented<br />DataFlux Data Jobs:<br />apply corrections to data<br />built using graphical interface, not coding<br />self-documenting with ability for notes<br />full logging/audit trail<br />
  32. 32. 5. Correct <br />DataFlux Solvency II Data Governance Framework - Methodology<br />Correct information (manually and/or automatically)<br />
  33. 33. 6. Improve<br />DataFlux Solvency II Data Governance Framework - Methodology<br />Perform a root cause analysis and initiate improvement/preventative actions<br />Analyse potential causes of data quality issues<br />Internal business processes<br />System processes<br />Lack of data entry controls<br />External data<br />Integration touch-points<br />Initiate improvement/preventative measures<br />Business processes<br />Training<br />Real-time DQ controls on data entry<br />Data governance rollout across the enterprise<br />
  34. 34. DataFlux fitting into the Solvency II data landscape<br />Solvency II<br />Modelling<br />Data<br />Sources<br />Regulatory Reporting<br />calculation engine<br />Data Quality Reporting<br />Data Governance Gateway<br />Data Preparation<br />Data Assessment<br />Capital Adequacy Reporting<br />Risk Reporting<br />Solvency II Staging Area<br />Data Risk Assessment<br /><ul><li>Accuracy
  35. 35. Completeness
  36. 36. Appropriateness</li></ul>correction<br />
  37. 37. DataFlux Data Management Studio<br />DataFlux Solvency II Data Governance Framework - Technology<br />Create business rules in central repository<br />Apply data monitoring jobs to conduct ongoing Data Governance<br />Build DQ/DI jobs & services<br />Conduct in-depth data assessment<br />Modules:<br />Essential: Profile, Monitor<br />Potential: Integration, Quality, Entity Resolution<br />
  38. 38. “Productionise” for business-as-usual processing<br />Centralised repository<br />Execute on Windows or Unix/Linux<br />All processes are executable in batch or real-time<br />Integration with other applications and environments is via SOA (web services) or via API (C, C#, Java, etc.)<br />Security layer provided by the DataFlux Authentication Server<br />Modules:<br />Essential: Profile, Monitor<br />Potential: Integration, Quality, Entity Resolution<br />DataFlux Data Management Server<br />DataFlux Solvency II Data Governance Framework - Technology<br />
  39. 39. DataFlux Report Server (optional)<br />DataFlux Solvency II Data Governance Framework - Technology<br /><ul><li>Publish reports
  40. 40. Define user groups
  41. 41. Email notification and email report delivery (HTML, PDF, Excel)
  42. 42. Access and privilege controls
  43. 43. Deploy reports on corporate network
  44. 44. Alternatively, use corporate reporting tools on the results of the DataFlux business rules monitoring processes</li></li></ul><li>DataFlux Solvency II Data Governance Framework - Services<br />Tasks involved include:<br />Installation<br />Configuration of Data Connections<br />Design and execution of Data Assessment<br />Business Rule design<br />Setup of ongoing Monitoring processes<br />Design and implementation of Data Governance reporting<br />Best practice coaching & documentation<br />Delivered by DataFlux, DataFlux-trained partners and internal resources<br />Sized dependent on: <br />Data volumes & sources<br />Numbers of business rules<br />Customer’s available staff<br />
  45. 45. Next Steps<br />Solvency II Data Governance planning workshop<br />Technology demonstration on your data<br />Review of current project status<br />Planning for next steps – how to adopt the DataFlux framework<br />Launch phase<br />Initial project plan<br />Define the Solvency II Data Governance team<br />Install technology<br />Commence work on 6-step methodology<br />Joint validation of approach with FSA<br />

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