Automate data lineage for CCAR & stress tests. · Automate data lineage for CCAR & stress tests....
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Automate data lineage for CCAR & stress tests. ZDLC TM IT Knowledge Automation TM accelerates the extraction, analysis and formatting of both data and process lineage to enable financial institutions to meet the reporting quality requirements of CCAR in time. ZDLC TM IT Knowledge Automation TM > Data Lineage Solution Overview > Data Lineage Solution Overview / ZDLC IT Knowledge Automation Global financial institutions face difficult challenges to evidence their compliance to new regulations with sufficient quality and timeliness to avoid sanction. The Federal Reserve is mandating greater transparency and reporting accuracy for the Comprehensive Capital Analysis and Review (CCAR) and Dodd-Frank Act Stress Tests. Objections and conditional non-objections based on qualitative grounds from the Federal Reserve to bank’s capital plans are having a material effect. The proliferation of requirements from financial regulators in different jurisdictions with sometimes overlapping scope, but different timescales, is also stretching banks compliance resources. The ability to establish and evidence risk reporting data fidelity by tracing data and process lineage is becoming a key component of all financial institutions strategies to implement compliant and business- efficient systems. However, achieving this is difficult, because of the multitude and complexity of organizations, processes, databases, systems and spreadsheets involved. Manual approaches to tracing data lineage are arduous, time-consuming, and prone to error. An analyst familiar with the bank’s systems typically manages no more than two files a day, which then have to be manually validated and corrected. The lineage data created then has to be re-formatted for input to the banks meta-data repository to make it usable for compliance reporting. The urgency of the regulators’ deadlines, together with the risks from sanctions and reputational damage, mean that a different approach is needed to protect banks. Automation is the key to improving the quality, accelerating the process and reducing the costs of creating and maintaining accurate data and process lineage for regulatory compliance. 1
Transcript of Automate data lineage for CCAR & stress tests. · Automate data lineage for CCAR & stress tests....
Automate data lineage for CCAR & stress tests.ZDLCTM IT Knowledge AutomationTM accelerates the extraction, analysis and formatting of both data and process lineage to enable financial institutions to meet the reporting quality requirements of CCAR in time.
ZDLCTM IT Knowledge AutomationTM
> Data Lineage Solution Overview
> Data Lineage Solution Overview / ZDLC IT Knowledge Automation
Global financial institutions face difficult challenges to evidence their compliance to new regulations with sufficient quality and timeliness to avoid sanction.
The Federal Reserve is mandating greater transparency and reporting accuracy for the Comprehensive Capital Analysis and Review (CCAR) and Dodd-Frank Act Stress Tests. Objections and conditional non-objections based on qualitative grounds from the Federal Reserve to bank’s capital plans are having a material effect. The proliferation of requirements from financial regulators in different jurisdictions with sometimes overlapping scope, but different timescales, is also stretching banks compliance resources.
The ability to establish and evidence risk reporting data fidelity by tracing data and process lineage is becoming a key component of all financial institutions strategies to implement compliant and business-efficient systems.
However, achieving this is difficult, because of the multitude and complexity of organizations, processes, databases, systems and spreadsheets involved. Manual approaches to tracing data lineage are arduous, time-consuming, and prone to error.
An analyst familiar with the bank’s systems typically manages no more than two files a day, which then have to be manually validated and corrected. The lineage data created then has to be re-formatted for input to the banks meta-data repository to make it usable for compliance reporting.
The urgency of the regulators’ deadlines, together with the risks from sanctions and reputational damage, mean that a different approach is needed to protect banks.
Automation is the key to improving the quality, accelerating the process and reducing the costs of creating and maintaining accurate data and process lineage for regulatory compliance.
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IT KNOWLEDGE AUTOMATION
At the heart of the Cognizant solution to this problem is the IT Knowledge Automation capability of it’s Zero Deviation Lifecycle (ZDLC) technology.
Based on advanced process mathematics, ZDLC IT Knowledge Automation is able to automatically reverse engineer data lineage and process flows from existing system files, even where corporate knowledge or expertise has been lost.
ZDLC IT Knowledge Automation is able to trace lineage far more accurately and far faster than human analysts. It also makes it far easier to validate lineages and can also format the output so as to be ready to import directly into the metadata depository.
By accelerating the creation, validation and formatting of data lineage using automation, this approach makes delivering for the CCAR & Dodd - Frank Act Stress Test deadlines achievable for G-SIBs and D-SIBs. By increasing the accuracy, it also removes the threat of regulatory rejection on quality grounds.
A number of G-SIBs are now using ZDLC IT Knowledge Automation to automate the creation and formatting of data lineage files for regulatory reporting at a rate of over 1000/month.
BOTH SYSTEM AND END USER
One of the many difficulties of achieving compliance is creating transparent lineage for risk-related processes that are implemented tactically with end-user-com-puting (EUC), commonly spreadsheets. These are high risk from a transparency perspective and some compliance requirements address them explicitly.
It is one thing to create procedures to document the use of EUC and to manage version control, audit trails and so on, but there still exists the core problem of understanding what processes are embodied in the spreadsheet that impact the risk reporting data.
To address this, ZDLC IT Knowledge Automation is also able to create a data lineage for Microsoft Excel® spreadsheets that documents complex formulas and internal and external references in an understandable way so the lineage can be stored in a central meta data repository (e.g. those from Rochade, Informatica, etc) and the processes embodied in the spreadsheets made transparent.
COGNIZANT SERVICES
As well as providing the acceleration and accuracy of its IT Knowledge Automation capability, Cognizant can also provide its substantial expertise and services in all aspects of financial services IT and consulting.
ZDLC IT Knowledge Automation delivers automated capture, analysis and visualization of IT knowledge in a navigable and easily shareable format to accelerate compliance, governance and development.
A comprehensive, tool-based framework speeds up the time.
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Automated data lineage:
PL/SQL®
SAS® (until ver 9.2)
Oracle Hyperion Financial Management®
Transact-SQL®
SQL Server® (Stored procedures)
DB2® (Stored procedures)
Microsoft Excel®
CURRENT ZDLC TECHNOLOGY COMPATIBILITY
This is the first step towards the goal of the Zero Deviation Lifecycle (ZDLC).
Ask your Cognizant client partner for a demo, visit www.cognizantzdlc.com or email [email protected].
ABOUT COGNIZANT
Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise and a global, collaborative workforce that embodies the future of work. With over 50 delivery centers worldwide and approximately 217,700 employees as of March 31, 2015, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000 and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: @Cognizant.
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