In this Slideshare, we examine the key points banks need to consider in order to mitigate the threat of internal risk. Over recent years, rogue trader activity has driven some of the world’s biggest banks to the brink of bankruptcy. We examine why banks should take internal risk seriously - and how big the internal threat really is.

1. Data control and the
uncomfortable truth
of modern banking
Is your bank
operating in
the dark?

2. Cast your mind back… During the first, frantic
days of the financial
crisis in 2008, banks
across the world
scrambled to assess
their exposure to
Lehman Brothers and
other casualties of the
crash.

3. Outdated data architecture
left them exposed
They couldn’t
aggregate the
information they
needed quickly
enough…
…so they
couldn’t take
action on risk.

4. The Basel Committee took action
BCBS 239 was launched in the
aftermath of the crisis.
Its aim? To ensure banks could
monitor risk properly and report
on it quickly and efficiently.
BCBS 239

5. 14 principles
2 big issues
1. BCBS 239 is a guideline
only. No metrics provided.
No prescriptive rules.
2. The timescale for
implementation was
only three years.
2013 - 2016
?
??
Guidelines

6. The risk? Quick fixes and sticking plasters…

7. So what’s the issue?
It just isn’t that easy…
?
?
?
??
??
?
New Gresham
Guide
Banking in the dark:
Data control
frameworks for the
new risk era
For a more detailed
assessment of the new
directives designed to combat
banking risk as well as practical
advice to get compliant and
take control, download
Gresham’s latest guide.
Download Now

8. Problem 1
The massive growth in banking data
The swift financial decline that followed the crash coincided with
an equally rapid change in the way that people bank.
Functions and processes are siloed. Nothing is joined up.
Banking IT has become a patchwork of different systems,
offshored processes and complex data feeds.

9. Problem 2
Who’s responsible?
Data risk has typically been viewed as a tactical
function, passing between IT and operations.
But the Basel Committee has made it clear that the
responsibility for controlling data risk should lie at the
feet of senior management.

10. Problem 3
‘If it ain’t broke, don’t fix it’
Too many conflicting pressures mean it’s simply been easier
for banks to leave the issue on the back burner…
ON HOLD
ON HOLD
ON HOLD

11. But the risk of doing
nothing is growing:
$34.64bn has been lost to rogue traders over the past five years*
Regulatory fines have increased
by 271% in just two years**
Senior executives are coming
under greater scrutiny
*Gresham research 2015 **EY 2015
New Gresham
Guide
Banking in the dark:
Data control
frameworks for the
new risk era
The latest Gresham Guide
reveals how banks can protect
against data risk without the
hassle of wholesale
infrastructure change.
Download Now

12. It’s not all bad.
For those who take action and get control there’s
plenty of ‘carrot’ along with the ‘stick’:
Greater data visibility = easier identification of opportunity
Control baked in = innovation can be nurtured

13. And to get there?
A data control framework that reflects
the realities of modern banking…

14. Agile – can be implemented in weeks, with new
controls added in days
Adaptable – the technology fits the data: no need to
relabel, no expensive ETL tools
Compliant – existing regulatory boxes are already
ticked, new regulation can be implemented across
multiple feeds simultaneously

15. What steps can you take
to protect your bank?
1. Benchmark the strength
of your existing control
measures...
New Gresham
Guide
Banking in the dark:
Data control
frameworks for the
new risk era
The latest Gresham Guide
reveals how banks can protect
against data risk without the
hassle of wholesale
infrastructure change.
Download Now

16. 2. Take the quick fire checklist: test the
robustness of your data control framework
Can new controls be implemented quickly and efficiently across
every relevant dataset?
Is capacity built in to handle new regulations?
Can the LEI be integrated easily and efficiently?
Are exceptions red-flagged quickly and clearly?
Can data be aggregated in real-time and presented in an easy-to-use structure?
Are reports consistent and valid across every different feed and data format?

17. No? Perhaps it’s time to talk
to the experts…
CTC from Gresham is the enterprise data integrity platform. With
regulatory compliance built in and the ability to match multiple
feeds in multiple formats, it provides a quick-to-install data
control framework that can be implemented across your
financial institution in a matter of weeks.
gresham-computing.com

18. Conclusion: data risk needs to be viewed
as a strategic investment
When a proactive approach to risk combines with the right
technology, banks can stop looking over their shoulder –
and instead focus on business growth.

19. Discover where the risks in your control
system currently lie with a live demo of CTC
Check your own data and find out whether your data
control framework is fit for purpose.
A no obligation session with our product experts to identify data
integrity gaps and opportunities to align your existing processes.
Visit ctc-integrity.com/risk