Optimizing Regulatory Compliance with Big Data
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The document discusses optimizing regulatory compliance through next-generation data management and visualization. It outlines trends like increasing data volumes, sources, and regulatory requirements that are challenging traditional compliance architectures. A modern approach is proposed using big data platforms to ingest diverse data sources, perform automated preparation and analysis, and enable flexible reporting and visualization. This can help reduce costs, speed reporting, and improve auditability versus manual spreadsheet-based processes. Examples show how data preparation platforms combined with data storage, analytics, and visualization tools help financial firms more efficiently meet regulatory obligations like the SEC's Form PF.
Optimizing Regulatory Compliance with Big Data
- 1. Optimizing compliance with next-generation data management and visualization Optimizing Regulatory Compliance with Big Data
- 2. Agenda Has Regulatory Reporting been left behind? Perspective from a user Paul Van Siclen Director of Market Development Financial Services Qlik Mihaela Risca Sr. Solutions Marketing Manager Financial Services Cloudera Trends and Challenges in today’s Regulatory environment Bertrand Cariou Sr. Director of Solutions and Partner Marketing Trifacta Bringing it all together, the Power of 3
- 3. Paul Van Siclen Director of Market Development Financial Services Qlik Has Regulatory Reporting been left behind? Perspective from a user
- 5. Let’s get real Business Unit (1) Risk (2) Internal Audit (3) Senior Management / Corporate Board, Audit & Risk Committee ExternalAudit Regulators Originations/ Transaction systems Balance Sheet/ Portfolio Sub-ledger Market Data Economic/ Regulatory Capital ….the ugly truth Traditional static BI, spreadsheet driven Modern Regulatory Compliance Architecture Purpose built Applications; self service BI; Rapid deployment Business Unit (1) Risk (2) Internal Audit (3) Senior Management Board, Audit & Risk Committee ExternalAudit Regulators Originations/ Transaction Systems Balance Sheet/ Portfolio Sub-ledger Market Data Economic/ Regulatory Capital External Data Sources Next generation Big Data & visual analytics
- 6. 6 storage automated pre analysis reporting mobility embedded analytics collaboration and sharing analytic apps high performance databases preparation acquisition VISUALIZATION Visualization alone isn’t the answer Source: “The Digital Universe of Opportunities: Rich Data and the Increasing Value of the Internet of Things” – April 2014
- 7. Mihaela Risca Sr. Solutions Marketing Manager Financial Services Cloudera Trends and Challenges in today’s Regulatory environment
- 8. Spending Trends in Financial Services
- 9. Challenges with current state of Compliance 15-20% of the “run the bank” budget is spent on regulatory compliance. Data silos lead to duplication Proprietary architectures are resource intensive and expensive to maintain. • Financial data grows 100% per year. 70% of this data is unstructured, which is challenging to handle with traditional systems. • Too many data sources lead to inconsistency and hard to reconcile data. • Challenges with finer granularity (BCBS239 mandates transaction level) • Challenges with data lineage and audit High Cost of Compliance Risk of Non-Compliance Long Time to Reports Manual processes Slow to implement changes. Preparing the data for analysis takes too long. Report processing and validation exceed the window for reporting.
- 10. Challenges with Traditional Data Architecture ● Data silos ● Difficult to add unstructured data sources ● Proprietary architecture ● Sensitive data spread across systems ● Batch reporting processes ● Rapid data collection is challenging ● Issues with data quality ● Lacking agility and scalability to address future regulatory requirements
- 11. Managing Data for Comprehensive Regulatory Compliance Handle real-time data ingest from diverse sources Governance and Security Data Streams Deployment Flexibility Machine Learning Capabilities Diverse Analytical Options Enterprise Data Hub Scale easily & Cost effectively Batch or Real- time Data Streams Data Sources A comprehensive data management platform to support more accurate and efficient compliance Data Sources Data Storage & Processing Reporting, Analytics & Auditing Data Ingest Other Data Governance (Data Lineage, Data Protection) Data workflows and policies Data Preparation
- 12. Bertrand Cariou Sr. Director Solutions and Partner Marketing Trifacta Bringing it all together, the Power of 3
- 13. To drive more value here Before Data Can be Reported, It Has to Be Prepared
- 14. To drive more value here Ingestion Before Data Can be Reported, It Has to Be Prepared
- 15. To drive more value here You have to make this more efficient Optimizing & Publishing Enriching & Blending CleaningStructuringDiscovery Ingestion Before Data Can be Reported, It Has to Be Prepared
- 16. To drive more value here You have to make this more efficient Optimizing & Publishing Enriching & Blending Cleaning 80% of the time spent 20% StructuringDiscovery Ingestion Before Data Can be Reported, It Has to Be Prepared
- 17. BusinessValue($) Analysis Process (Time Spent) The Power of 3
- 18. Prepping Analyzing Driving Business Benefits BusinessValue($) Analysis Process (Time Spent) The Power of 3
- 19. Prepping Analyzing Driving Business Benefits BusinessValue($) Analysis Process (Time Spent) The Power of 3
- 20. Prepping Analyzing Driving Business Benefits BusinessValue($) Analysis Process (Time Spent) The Power of 3
- 21. Prepping Analyzing Driving Business Benefits BusinessValue($) Analysis Process (Time Spent) Excel ETL DIY (Scripting) The Power of 3
- 22. Prepping Analyzing Driving Business Benefits Prepping Analyzing Driving Business Benefits BusinessValue($) Analysis Process (Time Spent) Excel ETL DIY (Scripting) The Power of 3
- 23. Prepping Analyzing Driving Business Benefits Prepping Analyzing Driving Business Benefits BusinessValue($) Analysis Process (Time Spent) Excel ETL DIY (Scripting) The Power of 3
- 24. Prepping Analyzing Driving Business Benefits Prepping Analyzing Driving Business Benefits BusinessValue($) Analysis Process (Time Spent) Excel ETL DIY (Scripting) The Power of 3
- 25. Prepping Analyzing Driving Business Benefits Prepping Analyzing Driving Business Benefits BusinessValue($) Analysis Process (Time Spent) Excel ETL DIY (Scripting) The Power of 3
- 26. Business Data Commission/Gover nment Data Risk/Compliance Analyst Regulatory Reports The 6 Steps to Preparing Data for Regulatory Reporting
- 27. Discover Business Data Commission/Gover nment Data Risk/Compliance Analyst Regulatory Reports The 6 Steps to Preparing Data for Regulatory Reporting
- 28. Discover Business Data Commission/Gover nment Data Risk/Compliance Analyst Regulatory Reports The 6 Steps to Preparing Data for Regulatory Reporting Standardize
- 29. Structure Standardize Discover Business Data Commission/Gover nment Data Risk/Compliance Analyst Regulatory Reports The 6 Steps to Preparing Data for Regulatory Reporting
- 30. Structure Standardize Enrich Discover Business Data Commission/Gover nment Data Risk/Compliance Analyst Regulatory Reports The 6 Steps to Preparing Data for Regulatory Reporting
- 31. Structure Standardize Enrich Validate Discover Business Data Commission/Gover nment Data Risk/Compliance Analyst Regulatory Reports The 6 Steps to Preparing Data for Regulatory Reporting
- 32. Structure Standardize Enrich Validate Discover Business Data Commission/Gover nment Data Risk/Compliance Analyst Regulatory Reports The 6 Steps to Preparing Data for Regulatory Reporting
- 33. Structure Standardize Enrich Validate AutomateDiscover Business Data Commission/Gover nment Data Risk/Compliance Analyst Regulatory Reports The 6 Steps to Preparing Data for Regulatory Reporting
- 34. Use Case Private Fund Adviser Portfolio Transparency SEC reporting
- 35. Private Fund Adviser SEC's Form PF: Portfolio Transparency Data Storage & Processing Platform Data Preparation SEC Form PF Regulatory Reporting GENERAL LEDGER DIVIDENDS Reporting Total Balance per Account and Credit Default Swap Interest Business Problem: - Inefficiency done in Excel, requiring loads of manual intervention hence risks and high cost maintenance - Inflexible to catch up with growing analyst community requirements - Highly visible throughout organization and to the Regulators Solution: - Stored in Hadoop, managed with Cloudera, wrangled with Trifacta and visualized with Qlik - Exponentially improve the “work paper” process with confidence of sound master data management Value Achieved: - x5 times faster to report both in design and processing - Standardized process across 200 analysts - Lineage tracking for audits - More agility in turning around compliance/reg. reports - Reduce overhead on IT and promote data access to LOB users.
- 36. Qlik http://www.qlik.com @PaulVanSiclen [email protected] Q&A Trifacta http://www.trifacta.com Follow us: @Trifacta [email protected] Download Trifacta Wrangler trifacta.com/start-wrangling Cloudera http://www.cloudera.com Follow us: @Cloudera [email protected] Download “Top 12 Financial Services Solutions” Download Cloudera Navigator http://www.cloudera.com/product s/cloudera-navigator.html
- 37. Thank you