Data organizations play a vital role in helping the financial services sector overcome the longer-term impacts of COVID-19. Notably, in terms of re-evaluating and adapting their Chief Data Office (CDO) strategy to deliver fresh benefits and working paradigms. In this context, the benefits of optimizing regulatory reporting through the adoption of ontologies cannot be overlooked.
Financial services firms cannot expect any slowdown in the velocity of the regulatory agenda in the future. Although there has been a brief hiatus around the regulatory considerations due to COVID-19, some challenges persist. For instance, there is no alignment across regulatory bodies in respect of their specific requirements and a lack of homogeny in how individual institutions tackle regulatory reporting.
Furthermore, the regulatory burden is moving away from pure transactional data to a broader array of data types including qualitative data. This change will increase the burden on the Chief Data Officer as they look to define and manage the data flows. A way out is to establish ontologies at the heart of regulatory reporting.
A financial services firm’s compliance burden in terms of both operational overhead and costs can be reduced by mapping regulations to a common ontology, mapped to each system instead of remapping each regulation itself to each system. This ontological approach is tied to the cloud, with data ingestion into the cloud-managed systematically using tagging to aid data management. An ontological approach to regulatory reporting unlocks data value from the cloud, as the ingested data is contextualized and understandable.
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