Creating A Solvency II Data Governance Framework
- 1. Creating a Data Governance Framework for Solvency IICopyright © 2011 DataFlux CorporationAll rights reserved
- 2. A combination of Technology, Methodology & ServicesDeveloped by DataFlux through working with 10 insurers on early-stage Solvency II Data Governance initiativesThe 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 approachWhat is the DataFlux Solvency II Data Governance Framework?
- 3. DataFlux fitting into the Solvency II data landscapeSolvency IIModellingDataSourcesRegulatory Reportingcalculation engineData Quality ReportingData Governance GatewayData PreparationData AssessmentCapital Adequacy ReportingRisk ReportingSolvency II Staging AreaData Risk Assessment:Accuracy
- 4. Completeness
- 6. DataFlux fitting into the Solvency II data landscapeSolvency IIModellingDataSourcesRegulatory Reportingcalculation engineData Quality ReportingData Governance GatewayData PreparationData AssessmentCapital Adequacy ReportingRisk ReportingSolvency II Staging AreaData Risk AssessmentAccuracy
- 7. Completeness
- 9. DataFlux Solvency II Data Governance Framework - Methodology6-Step Approach to measuring & reporting Accuracy, Appropriateness & CompletenessData Governance Project Document templatesProject PlanMapping documentsDesign BriefDataFlux Solvency II Data Governance examplesDashboard with 3 reporting levelsDQ Business Rule examplesData Job templatesBest practice Scoring Methodology for measuring data quality by dimensions(Solvency II Data Governance does not include providing a Solvency II model, model scoring, SCR/MCR calculations, model reporting)
- 10. DataFlux Solvency II Data Governance Framework - MethodologyAssess data landscape – Portfolios, Risk domainsIdentify list of fields to calculate SCR/MCR (Data Dictionary)Identify data governance requirements (Business Rules)Verify Data Dictionary against data sourcesDescribe the data governance checks (Business Rules)Design project landscape (including population of staging area)Populate staging areaApply data governance checksPopulate metrics repositoryReport on results of data governance checksCorrect information (Manually and/or automatically) Perform a root cause analysis and initiate improvement/preventative actionsThe 6-step approach
- 11. 1. DefineDataFlux Solvency II Data Governance Framework - MethodologyAssess data landscape – Portfolios, Risk domainsIdentify list of fields to calculate SCR/MCR (Data Dictionary)Identify data governance requirements (Business Rules)Key documents:Landscape DiagramDescription and Process diagrams of source systemsProject PlanIdentify the components, resources and delivery timelinesData DictionaryDetail the table & field names/types within the systems in scopeProcess documentFunctional description of data governance approach for each Portfolio or risk category in scopeMapping documentsUsing the data dictionary, map the required fields through the different processes from source to targetReporting Requirements Contains the design of output reports
- 12. Collaboration tool for business & I.T. usersDocument the data dictionaryPromotes auditabilityLink the dictionary to rules, processes and external documentsTrack lineageBusiness Data NetworkDataFlux Solvency II Data Governance Framework - Methodology
- 13. 2. DesignDataFlux Solvency II Data Governance Framework - MethodologyVerify Data Dictionary against data sourcesDescribe the data governance checks (Business Rules)Design project landscape (including population of staging area)Data AssessmentVerify assumptions made when creating the data dictionaryidentify data issues that will be monitored using data governance checksDesign data governance checks (business rules) based on: The detailed data requirements to support SCR/MCR calculationThe data requirements to assess confidence in terms of accuracy, appropriateness and completenessDesign the staging area support for:Data Quality AssessmentsRequired metrics for data governance reportsDesign processes to populate staging areaMigrate data to staging areaTransform, cleanse and standardise data
- 14. DataFlux Solvency II Data Governance Framework - Methodology
- 15. 3. ApplyDataFlux Solvency II Data Governance Framework - MethodologyPopulate staging areaApply data governance checksPopulate metrics repositoryPopulate staging area
- 16. Retrieve data from sources and populate into staging area
- 17. Apply data governance checks
- 19. Apply business rules against source data
- 21. Store the business rules results in repository
- 22. Score the results of applying the business rules according to Appropriateness, Accuracy and Completeness
- 23. Aggregate data for different reporting levels
- 25. Deploy to server
- 26. Set up processing schedules
- 27. Set up event triggers (e.g. email to Solvency II data stewards)3. ApplyDataFlux Solvency II Data Governance Framework - MethodologyPopulate staging areaApply data governance checksPopulate metrics repositoryData JobDimensions
- 28. 3. ApplyDataFlux Solvency II Data Governance Framework - MethodologyPopulate staging areaApply data governance checksPopulate metrics repository
- 29. 4. PublishDataFlux Solvency II Data Governance Framework - MethodologyReport on results of data governance checksUse DataFlux Report Server and/or Corporate Reporting OptionsGlobal LevelDimension LevelSummary LevelDetail Level
- 30. 4. PublishDataFlux Solvency II Data Governance Framework - MethodologyReport on results of data governance checksCompany name and logoData Dimensions in scope will appear. If out of scope, background will be greyBusiness Unit listSummary LevelData Feed listDetail Level – Appears when data is selected on Summary levelData dimension list
- 31. 5. Correct DataFlux Solvency II Data Governance Framework - MethodologyCorrect information (manually and/or automatically)Solvency II allows for the correction or enhancement of data in order to improve its quality with regard to calculating SCRThese must be auditable and fully documentedDataFlux Data Jobs:apply corrections to databuilt using graphical interface, not codingself-documenting with ability for notesfull logging/audit trail
- 32. 5. Correct DataFlux Solvency II Data Governance Framework - MethodologyCorrect information (manually and/or automatically)
- 33. 6. ImproveDataFlux Solvency II Data Governance Framework - MethodologyPerform a root cause analysis and initiate improvement/preventative actionsAnalyse potential causes of data quality issuesInternal business processesSystem processesLack of data entry controlsExternal dataIntegration touch-pointsInitiate improvement/preventative measuresBusiness processesTrainingReal-time DQ controls on data entryData governance rollout across the enterprise
- 34. DataFlux fitting into the Solvency II data landscapeSolvency IIModellingDataSourcesRegulatory Reportingcalculation engineData Quality ReportingData Governance GatewayData PreparationData AssessmentCapital Adequacy ReportingRisk ReportingSolvency II Staging AreaData Risk AssessmentAccuracy
- 35. Completeness
- 37. DataFlux Data Management StudioDataFlux Solvency II Data Governance Framework - TechnologyCreate business rules in central repositoryApply data monitoring jobs to conduct ongoing Data GovernanceBuild DQ/DI jobs & servicesConduct in-depth data assessmentModules:Essential: Profile, MonitorPotential: Integration, Quality, Entity Resolution
- 38. “Productionise” for business-as-usual processingCentralised repositoryExecute on Windows or Unix/LinuxAll processes are executable in batch or real-timeIntegration with other applications and environments is via SOA (web services) or via API (C, C#, Java, etc.)Security layer provided by the DataFlux Authentication ServerModules:Essential: Profile, MonitorPotential: Integration, Quality, Entity ResolutionDataFlux Data Management ServerDataFlux Solvency II Data Governance Framework - Technology
- 39. DataFlux Report Server (optional)DataFlux Solvency II Data Governance Framework - TechnologyPublish reports
- 41. Email notification and email report delivery (HTML, PDF, Excel)
- 42. Access and privilege controls
- 43. Deploy reports on corporate network
- 44. Alternatively, use corporate reporting tools on the results of the DataFlux business rules monitoring processesDataFlux Solvency II Data Governance Framework - ServicesTasks involved include:InstallationConfiguration of Data ConnectionsDesign and execution of Data AssessmentBusiness Rule designSetup of ongoing Monitoring processesDesign and implementation of Data Governance reportingBest practice coaching & documentationDelivered by DataFlux, DataFlux-trained partners and internal resourcesSized dependent on: Data volumes & sourcesNumbers of business rulesCustomer’s available staff
- 45. Next StepsSolvency II Data Governance planning workshopTechnology demonstration on your dataReview of current project statusPlanning for next steps – how to adopt the DataFlux frameworkLaunch phaseInitial project planDefine the Solvency II Data Governance teamInstall technologyCommence work on 6-step methodologyJoint validation of approach with FSA