In Europe, discussions are underway that may require public and private sector organizations to employ a new chief data protection officer position tasked with overseeing/protecting the organization’s data.
While appointing a new position is a start, how can one individual effectively monitor data in a systematic way as is being suggested?
This is where technology comes in. For investment management firms, data management has often been viewed as a separate area outside of the scope of core investment functions such as portfolio, accounting, compliance, trade order management, etc.
Many times these systems do not use data management technology and instead rely on a batch processing/reporting model in which administrators have to “chase down” issues that affect data integrity and operational risk. This becomes even more of a challenge if the organization uses multiple systems, i.e. the silo-based approach (more about that here).
Without data management technology, the task of monitoring data can become overwhelming. At INDATA, we view data management as a core function of the software itself much like the other functional areas we cover for portfolio modeling, trade order management, compliance, back office, performance, reporting, billing, CRM, research and the other key areas of the investment process.
Utilizing systems that employ data management technology (instead of a chief protection officer or other executive within the organization, such as the chief compliance officer, to chase down data issues) will bring to light any exceptions, outages or issues before they become a problem.