Data Lifecycle Manager for Regulatory Compliance
- January 12, 2016
- Ashu Sikri
Compliance with regulatory mandates demands a fundamental re-think of how banks and asset managers approach data access, analysis, and governance. What is required? A flexible and open solution that promotes innovation while also providing operational controls. The Data Lifecycle Manager built on Rapture delivers on this ask.
Fallout from the financial crisis continues as risk managers and IT professionals rush to implement solutions that address regulatory mandates. Banks and asset management firms must satisfy high level principles (the Basel Committee on Banking Supervision’s Risk Data Aggregation and Risk Reporting Principles) and specific asks (Volcker Rule and KYC/AML).
Data governance and operational transparency are consistent themes across these regulations, all driven by a motivation to bolster risk management capabilities. Manual workarounds and siloed systems that inhibit data sharing are rightly called out as areas of concern. A few changes on the margin to monolithic legacy systems will not be sufficient; general consensus is that a more fundamental re-think is needed:
Ideally, banks need a single platform that can be automated for data accumulation and aggregation. And since data governance has taken on additional importance with the Volcker Rule, the platform needs to be robust enough to provide an audit trail for risk managers, auditors and regulators.
Many of the largest banks with over $50 billion in assets are building their own in-house systems. However, it is questionable how well those systems are integrated with existing systems at the firms. Even more questionable is how smaller firms will cope with the cost and complexity of new technology demands.
IT departments face the confounding challenge of responding to these regulations while remaining responsive to business users seeking to experiment with the latest cloud-based research and trading offerings.
Incapture Technologies was founded by architects and developers with decades of experience delivering technology solutions for global asset managers. The challenges faced in those environments drove the development of Rapture, an open architecture framework.
By virtue of being built on Rapture, our products and solutions are flexible and adaptable while also offering a high degree of operational governance and controls. Some specific benefits that accrue to users include:
- An automatically generated audit log of all system events
- A robust entitlements framework that governs activity at the document level
- Operational resiliency and scalability
- Promotion of code through distinct research, testing, and production environments in service of a healthy SDLC
- Transparency to underlying operations which makes troubleshooting easier
- Open and modular architecture which promotes integration with legacy systems and adoption of new offerings
- A robust SDK that supports continued enhancements
These underlying benefits are crucial; a recent survey of global banks found that of the 11 Risk Data principles outlined by the Basel Committee, Data Architecture and IT Infrastructure and Adaptability (part of Data Aggregation) had the lowest compliance. Adding new features and tools to existing applications will not help firms respond to these asks; rather, a platform driven approach is required.
Incapture Technologies delivers Products and Solutions that enable clients to leverage and benefit from foundational aspects of the Rapture platform. One product offering particularly suited to addressing the regulatory requirements detailed earlier is the Data Lifecycle Manager which covers the full lifecycle of enterprise data:
- Capture: Automate the collection, validation, transformation, and storage of inbound data, whether through batch processing or real-time event streams
- Curate: Empower searching, locating, and retrieval of data by creating a data catalog of associated data descriptions
- Search: Federated access to data through consistent references which abstract away underlying operational concerns
- Distribute: Expose data and services to various consumers including commercial and open source data visualization and analysis tools
Having implemented Rapture as the underlying fabric for data management, firms can easily build extensions to address specific needs; for example, build and execute fully audited workflows that automate extraction of structured data from a variety of sources to meet client on-boarding requirements. Or, integrate risk management models and reporting tools to deliver a flexible and transparent regulatory reporting engine. In all cases, clients are prepared for the future by virtue of a robust underlying architecture that delivers flexibility and operational resiliency.
The Data Lifecycle Manager built on Rapture offers IT departments a unique path forward from their present challenges. We welcome questions and inquiries as to how Incapture can support your business needs at email@example.com.