The Chief Data Officer's Agenda: The Need for Information Governance Controls

www.cdovision.com

Moderator: Tony ShawCEO, DATAVERSITY

Speaker: Steve ZagoudisCEOMetaGovernance Inc.

#CDOVision

The Need for Information Governance Controls

Steven ZagoudisMetaGovernance® Incorporated

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• Information as a corporate asset• Regulations requiring content

integrity• Competitive pressures for

efficiency• Governance has moved to the

Boardroom

Corporate Trends

Corporate Information Issues

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Corporate Data and Information Issues

3

Corporate System

SALES=$4.6M

Operational System

SALES=$4.5M

Sales System

SALES=$4.7MOverlapping Transaction

Systems

Internal Reports and External

Disclosures that don’t agree

Spreadsheets and Access Data Bases

Inconsistent Data

Repositories


Many Versions: Which is Correct?

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Sales ReportRegulatory Reports

SEC Reports

Operational Reports

Spreadsheet

$4.5M $4.4M $4.6M $4.7M

Corporate System

SALES=$4.6M

Operational System

SALES=$4.5M

Sales System

SALES=$4.7M

General Ledger

SALES=$4.6M

Data Warehouse

SALES=$4.5MSALES=$4.4M


Status Quo Is No Longer Sustainable

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Sarbanes Oxley

Basel III

UntrustedData

Warehouses

Proliferation of Spreadsheets

Unsustainable Data Governance

Redundant IT Systems

Audit Standards

AffordableCare Act

TIME

DA

TA Q

UA

LITY

HIPPA

Medicare Standards

Dodd-Frank

Basel IIIncreasingOversight

Evolving Disciplines Move Closer to the Business

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Manual Controls

Spreadsheet Controls

Data Controls

Reporting-Layer

Controls

Enterprise Data Management

(1995+)

Data Governance

(2005+)

Enterprise Information

Management (2008+)

Information Governance

(2012+)

Metadata Governance

(2014+)

Emerging FocusInformationManagement

Trends

Data Control Trends


7

Data

ContextGovernance

Data Governance

Database

Data Definitions

Tables

Columns

Systems

Data Quality

Domain Values

Data Models

Big Data

Data Stewards

Data Controls

Data Procedures

Data Policies

Data Ownership

Data Standards

Operational Units

KPIs CSFs

FinanceAccounting

Reporting

Disclosure

MetadataData Values


The Scope of Information Governance is much broader than a focus on data assets

• Data are raw assets produced and available for consumption by business operations.

• Information is created by putting this raw data into business context (via the Business Architecture).

• Information become the true asset of the organization.• Information Governance is the control and oversight of

these information assets.• Information is the true knowledge base of the

organization that must be protected and managed.• There may someday be an evolution to Knowledge

Governance in line with the works of Dee Hock.

8MetaGovernance Incorporated. All Rights Reserved. 2014

9

Content

ContextGovernance

Database

Data Definitions

Tables

Columns

Systems

Data Quality Domain

ValuesData

Models

Big Data

Data Stewards

Data Controls

Data Procedures

Data Policies

Data Ownership

Data Standards

Operational Units

KPIsCSFs

FinanceAccounting

Reporting

Disclosure

Metadata

Information Governance

Data Values

Data Governance

Legal

Compliance

Security

Retention eDiscovery

Records

Email

Derived Info

Social Media

UDAs

Regulations Information Controls

Audit

Privacy

Value Mapping

Archives

Transparency

Automation

Decision Support

Digital Signatures

Risk

Documents

Websites

DisclosuresPatents


What is needed is a clear understanding of the sources

and uses of information across the enterprise…


Key Information Governance Terms

Information Steward

(Owner/SME)

Information Delegate

Information Custodian

Information Consumer

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The Information Governance Awareness Map


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The need for Information Governance Controls – Inconsistent data sources across departmentsD

epar

tmen

tal U

sage

Bus

ines

s A

ppl

icat

ion

s

Bus

ines

s A

ppl

icat

ion

D

atab

ases

(T

rans

acti

ona

l)

Bus

ines

s A

ppl

icat

ion

D

atab

ases

(R

epor

tin

g)Phase

Loan SystemCredit

Underwriting System

General Ledger System

Loan DB Credit DB

Loan DW Credit DW Enterprise DW

Accounting .XLS

• Credit• Accounting• Treasury

• Credit• Risk• Compliance

• Marketing• Sales• Audit

• Accounting

GL DB

Manual Updates Applied


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The need for Information Governance Controls – Inadequate Controls

Depa

rtm

enta

l Usa

geBu

sines

s Ap

plica

tions

Busin

ess

Appl

icatio

n Da

taba

ses

(Tra

nsac

tiona

l)

Busin

ess

Appl

icatio

n Da

taba

ses

(Rep

ortin

g)

Phase

Loan SystemCredit

Underwriting System


Loan DB Credit DB

Loan DW Credit DWEnterprise

DWAccounting

.XLS




• Accounting

GL DB

1 3

2 4 5

Control Descriptions:1. Data movement job status only – Pass/Fail2. Record counts Loan-to-EDW3. Record counts Credit-to-EDW4. Data movement job status only – Pass/Fail5. Account totals – GL-to-EDW


What is wrong with this picture?

• Departments are pulling data from different systems.

• Data is inconsistent because manual updates are being applied “downstream”.

• Departments get different views of the data depending upon from where they pull the data.

• Controls between the system are not validating content –only record counts.

• Some data flows have no controls implemented.• Reports and disclosures will be inconsistent across the

enterprise.


The Popular (Mis)conception of Automated Reporting

Data Warehouse

WarehouseUpdates

Call Reports

Income Tax Filings

SEC Filings

General Ledger

Loan 1

Loan 2

CRM

Derivative

Data Sources


A different story comes to light when following the true Information Flow of the Company

Data Warehouse

WarehouseUpdates

SEC Filings

17

General Ledger

Loan 1

Loan 2

CRM

Derivative

Data Sources

Call Reports

Income Tax Filings

Data Extracts


A different story comes to light when following the true Information Flow of the Company

Data Warehouse

WarehouseUpdates

SEC Filings

18

General Ledger

Loan 1

Loan 2

CRM

Derivative

Data Sources

Call Reports

Income Tax Filings

Data Extracts


Source Data Base

Spreadsheet Spreadsheet

Marketing Operations Accounting

A

Regulators and Auditors

Spreadsheet

Che

cker

s and

Ve

rifie

rs

19

B CData Mart

Data Mart

Spreadsheet Spreadsheet

GL

Spreadsheet Spreadsheet Spreadsheet

A B C

IT Data Patches

Executive ManagementMetaGovernance Incorporated. All Rights Reserved. 2014

A Reconciliation Control Framework® is needed to

break this cycle of risk and waste…


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The need for Information Governance Controls – Improved Controls to verify meaningful contentDe

part

men

tal U

sage

Busin

ess

Appl

icatio

ns

Busin

ess

Appl

icatio

n Da

taba

ses

(Tra

nsac

tiona

l)

Busin

ess

Appl

icatio

n Da

taba

ses

(Rep

ortin

g)Phase

Loan SystemCredit

Underwriting System


Loan DB Credit DB

Loan DW Credit DWEnterprise

DWAccounting

.XLS




• Accounting

GL DB

1 3

2 4 5

Control Descriptions:1. Accrued Interest, Outstanding Principle Loan-to-Loan DW2. Accrued Interest, Outstanding Principle Loan-to-EDW3. Total Outstanding Exposure, Customer LTV value Credit-to-Credit DW4. Total Outstanding Exposure, Customer LTV value Credit-to-EDW5. Account totals, GL Hierarchy totals – GL-to-EDW

7

6


A Reconciliation Control Framework®

Transactional Systems (Sub-ledgers)

“A”


“B”

Reporting Systems (Data Warehouses)

“C”B=C?

Total Loan Balance = $145,975,550.00

Total Loans by DivisionEast = $125,000,300.00West = $ 20,975,250.00Total = $145,975,550.00

Account 12124-321-01 (Loans) Balance = $145,975,550.00


Information Governance Controls Validate Content Across the Entire Information Flow

Data Warehouse

WarehouseUpdates

SEC Filings

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General Ledger

Loan 1

Loan 2

CRM

Derivative

Data Sources

Call Reports

Income Tax Filings

Sub-Ledger Systems


Financial Data Warehouse Control Status

Loans $45,123,567 $45,123,567 $45,123,567 Balanced

Payments $66,543,123 $65,876,891 $67,543,888 Variance

Investments $100,321,111 $100,321,111 $100,321,111 Balanced

Data CorrectionsMetaGovernance Incorporated. All Rights Reserved. 2014

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• Automation of Manual Data Validation• Elimination of Redundant Reporting Efforts • Reduced Remediation

Costs• Automated Software

Testing

Resulting Gains in Operational Efficiency…


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• Business Decisions Based on Good Data

• Financial Statement Accuracy

• Clean Audit Reports

• Improved Regulatory Rating

• Reduced Reputation Risk

RISK MANAGEMENT

…and Reduction in Enterprise Risk


For additional information contact:Steven Zagoudis

[email protected](404) 593-1601

www.metagovernance.com

Questions?

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