Chief Information Officer – robust IT governance with a consistent approach to data controls & quality;
Chief Financial Officer – faster reporting timetable with a consistent approach to financial and management information;
Chief Executive Officer – enhanced business performance through risk-based decision making and more efficient allocation of capital.
Solvency II Components Programmes will be challenged to align a variety of different functions as Solvency II will impact all elements of the Business Slide Solvency II Programme (inc Programme Office) Internal Model/Risk Management ORSA and the 6 Tests Risk Management Data Quality & Governance Solvency II Data Repository IT Systems & Processes Systems & Data Governance & Oversight Documentation, Comms & Training Governance & Communications External Reporting Standard Formula Portfolio Management Calculation Kernel Assets & Asset Liability Management (ALM) Balance Sheet & Portfolio Management Technical Provisions
Data Policy & Governance The Data Policy should define the complete needs of all data and all data users across the organisation Slide
There are a number of areas of consideration for Data Policy & Governance Solvency II Programme Slide
Complete, Accurate & Appropriate;
Meaningful to the business and value adding;
Compatibility with shared systems, data warehouses, part of a bigger group?
Enterprise Wide vs. Focus on Internal Model ?
Risk management Overlay vs. Embedded ?
Producer / Consumer approach to overcome issues with data flows across various functional areas.
Data Policy & Governance
Systems & Data An approach to managing the various key areas is given below Solvency II Programme Slide
Data Directory The Data Directory is the central foundation on which the data workstream is built. Slide
Is mandated by Lloyd’s;
Guidance has been produced based on CEIOPS’ guidance;
Each row represents a group of data which relates to an Internal Model Input;
Key input into the Internal Model.
Data Dictionary A working tool which is used across the whole Solvency II Programme Slide
Much more detailed/granular with respect to the data;
Owned by the data architect;
Shows the lineage and characteristics of each individual data field;
A number of tools can be used to hold the Data Dictionary.
Data Flows & Controls Diagrams The Data Flows & Controls Diagrams (DFDs) pictorially represent how the data is manipulated and physically moves within the organisation. Slide
Created for each row on the Data Directory – i.e. for each Internal Model Input;
Should cross-reference the Data Dictionary;
Overall data quality and governance can be seen by incorporating the data controls.
Data Controls Register The Data Controls Register (DCR) is the central repository that contains all of the data control across the organisation. Slide
The DCR categorises the controls into a number of sub-categories so that weaknesses and deficiencies can be identified.
Reports Register The Reports Register (RR) highlights all of the reports and reconciliations that occur to the data as it moves through the organisation. Slide
The RR categorises all of the reports (both manual and automated) that are used within the organisation to see the effectiveness of the controls.