Nearly 40 percent of survey respondents said their organization does not take a consistent, enterprise-wide approach to mining, reporting and analyzing risk data.
A new survey from Deloitte
showed many organizations are not taking a consistent, company-wide approach to
mining, reporting and analyzing risk data.
The survey, which fielded
responses from 900 professionals, focused on the challenges facing data-management
and analytics programs used by businesses to make strategic
decisions based on risk. More than a third (37.4 percent) of respondents
reported their companies are not taking a consistent, company-wide approach to
such programs. While nearly one-third (32.7 percent) of boards and executives
use detailed analysis from data collected across the company for important
risk-management decisions, 11 percent of executives surveyed said their
companies' data-governance programs were "non-existent."
"[Data governance programs]
centrally assess, track, and govern data quality, data-management policies and
procedures, usage and ownership, and the -golden sources' of data and how it is
managed," explained Bob Walley, who is with Deloitte's regulatory and capital
markets consulting practice. "Many organizations simply have not matured to the
level where they can effectively think through a quality
The biggest challenges to
risk-data-management programs included too many data sources (33.2 percent) and
too few resources (28.6 percent).
"Data-discovery tools are
useful for finding the data, but can't tell you it's the right data," Walley
noted. "In many cases, it may be there, but it requires an organization to
invest in the governance and discovery that need to take place in order to
uncover it and ensure that it is reliable for use in management decision making."
Compliance regulations have
caused some companies to run into difficulty as regulators raise the bar, he
"It often comes down to
issues involving control and quality, fragmentation of product and customer
systems, and data repositories used for different management purposes," he
said. "A lot of companies have also taken a siloed approach to meeting specific
regulatory requirements rather than looking at the whole picture."
Besides leadership support,
there are a number of keys to success for risk-data-management and analytics
programs. Among them, Deloitte recommends keeping the program business-driven
and tackling smaller projects within the broader program.
programs are a huge undertaking for most companies," John Lucker, leader
of Deloitte's advanced analytics and modeling practice, said in a statement.
"When companies have full understanding and endorsement from top
executives and board members, programs can be extremely successful, offering
not only insight into future trends, but an advantage over competitors."