Integration, data quality and agility in the face of changing rules and regulations are pre-requisites for building a comprehensive regulatory reporting solution.

Whether operating globally or in a single national regulatory area, regulation is a fact of life. Dodd Frank, US Patriot Act, US GAAP, the Basel Accords, Sarbanes-Oxley, FINREP, and COREP are all different regulatory frameworks that require timely and accurate submissions.

These regulatory imperatives target various areas of national and supra national interest:

  • Capital Adequacy – Balance Sheet strength
  • Reserve Requirements – Coverage of cash needs
  • Corporate Governance – Organization and responsibilities
  • Financial Reporting and Disclosure – Quarterly and Annual financial reporting
  • Know Your Customer (KYC) – Anti-money laundering and cross border controls

Constantly evolving existing and the addition of new regulations have an impact not only on the business operations, but also in the overall data strategy and management including:

  • Dollar cost of compliance
    • Continually changing reporting requirements
    • Cost of validation and error correction
  • Complexity and number of supporting materials required for compliance
    • Increasing granularity of data
    • Growing dimensionality to the data
    • Need to “back fill” where customer history does not exist at the right level of detail
  • Transformation of source data to support multiple reporting needs
    • Insulation of reporting needs from transactional structures
    • Traceability and auditability
  • Reference data management and maintenance
    • Accurately model reference data, map it to internal sources, keep it updated when regulations change

As the risk of non-compliance and consequent costs rises with new and changing regulations it is important for firms to undertake a data management initiative that recognizes that any solution needs to be flexible and responsive to changing requirements. Regulatory reporting is constantly evolving and the right solution has to recognize that any changes to structure and data will need to be accommodated in a timely manner with a minimum of disruption.

How Magnitude helps

  • Magnitude’s unique business-model-driven approach to automating the data warehouse results in an industry leading time-to-value as a higher proportion of effort goes into defining the requirements to satisfy regulatory reporting, not the technical effort of building and maintaining the warehouse
  • Magnitude Master Data Management offers capabilities to reduce the negative impact of non-compliance through intelligent rules-based data validation and workflow-based exception handling and governance, as well as robust reference data management to model and map for LEI and other classification and identification requirements.
  • Magnitude’s automated referential integrity and data validation enables the integration of available information and the identification of places where required information is lacking (and may need to be “backfilled” from other sources).
  • Magnitude provides dynamic maintenance and auditability of relevant reporting views ensuring that changes to source data or to organizational structures are reflected with minimal impact lowering operational risk.
  • Avoids high risk “rip and replace” strategies, using the Magnitude Dynamic Information Warehouse (DIW) to incrementally integrate, manage and load transactional and operational data from disparate silo systems into a data warehouse.
  • Offers an agile technology and approach to accelerate project delivery time to meet business needs faster

Resource Library

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A Rigorous Approach to Regulatory Reporting

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