In asset management, data is king.
Having an established and consistent data governance program in place for asset managers not only reduces organisational risk, but also provides a platform upon which businesses can build a more efficient and information-driven development strategy, assisting in asset allocation.
Data governance should not be a standalone entity. It requires a collaborative and holistic investment from all corners of the organisation, and when executed effectively, can bridge the gaps between organisational, systematic, and technological processes to create a more streamlined and comprehensive solution for investment managers.
Data Quality Benefit
One of the biggest driving factors in having a robust data governance policy in place is the qualitative impact it has on the data itself.
Asset and investment managers need to be able to build trust and relationships with their data. By utilising the power and access of the internal data governance program, they’re able to immediately identify the relevant information which has already been pre-validated and maintained, reducing the need for unnecessary and time-consuming diligence to determine risk.
Not only is there a benefit to asset management firms on the quality of the information but having a data governance program in place can also significantly reduce the cost, particularly in the gathering and processing stages.
The procurement of data for asset management organisations can be expensive and incredibly time consuming. By harnessing the power and capabilities of a data governance program, it both ensures any potential issues or faults in the data can be resolved quickly at an earlier stage, as well as preparing the data for future use by investment or asset managers.
Data Ownership Benefit
An effective data governance strategy allows asset management firms to easily profile and allocate ownership within their information catalogue.
Accountability for data is an important factor in asset management which must be considered by firms. The access, manipulation and use of data contained within information processing systems is ruled by internal usage policy and guidelines, meaning it can be efficiently circulated to the relevant data owners who have been nominated within the various divisions.
Who makes changes to the data when they are required?
Properly structured data governance can answer these questions. It also aids decision-makers in the construction process of these guidelines and policies and provides a secure baseline to map out the data journey and touch points for auditing purposes.
Risk Management Benefit
Financial services remain one of the most heavily regulated industries of any global market. For asset management firms handling high-value investment portfolios, the reduction or elimination of unnecessary risk is the key to growth and sustainability.
Data governance touches all areas of the business but ensuring the validity and compliance of the information is perhaps the most important aspect of all, especially given the continual developments of external influence such as political and fiscal pressures. With the aid of data governance, firms are able to provide a transparent perspective on how data is used, acquired, and properly protected.
Internal Resource Benefit
Nurturing a robust internal data governance strategy allows for both consistency and agility across the entire business, which in turn allows for faster and more informed decision making by asset managers.
A reduction in necessary resource allocation can allow businesses to be more responsive and adaptive for clients, focus efforts to benefit other areas of the business and slash the turnaround time for projects with a more demanding deadline.