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Blog > June 2017 > Data Lineage for Regulatory Compliance

Data Lineage for Regulatory Compliance

Data lineage has been identified for at least ten years as a vital element of data-related regulatory compliance. Despite this, our experience has been that businesses – and especially financial institutions – are not making the progress that might seem necessary.
Our VP of Strategic Technologies for Data Intelligence, Sue Habas, was recently a panelist on a webinar titled, “Tracking data lineage for regulatory compliance and change.” The poll questions presented during the webinar provided us with a great statistics on important topics in the data management industry, including some suprising revelations about the progress of regulatory compliance automation.
The first webinar question appears to confirm our aforementioned suspicions – at least for the 300 financial services representatives responded to the question. We asked, “How much progress has your organization made in implementing data lineage for regulatory compliance?” Here are the responses:
12%     -           As much implementation progress as possible
47%     -           Some implementation progress
14%     -           We have just started a program
17%     -           We are in a planning stage
10%     -           We have yet to make any progress
Given that some key compliance deadlines have already passed, and that others are not far off, these results should be a cause for great concern. GDPR is less than a year away, MIFID II not much more than six months away, and Basel III less than two years. Those are just a few of the key dates on the horizon.
When we talk to our clients about what’s going on, we have heard that some of them are getting some serious misdirection. While some may believe that, data lineage is too hard and not necessary, all you need is Data Governance and Business Lineage! To me, that is like saying, “if your car’s broken, you can see what’s going on by checking the maintenance log and the blueprints.”
We encourage the implementation of data lineage because we feel that knowing your data’s origin can enable data stewards within your business to quickly pinpoint critical data elements. To support this claim, you needn’t look further than the results of the second poll question.
There’s no doubt that there are some real challenges in getting a data lineage program implemented. That was an issue that the second polling question tested. We asked, “What data management challenges does your organization face when implementing data lineage for compliance?” Attendees answered as follows (we allowed multiple responses):
79%     -           Managing lineage across multiple systems
54%     -           A shortfall in understanding our data
42%     -           New regulatory requirements
40%     -           Changing regulatory requirements
2%       -           No data management challenges
Those first two are plainly related to the need to dig in and investigate the detail of data lineage. The issue with managing lineage across multiple systems and that of new regulatory problems point to another significant challenge. There are some excellent solutions available that address compliance with one regulation or another. However, how are multiple regulations to be supported simultaneously, when multiple systems are implicated?  A Data Intelligence solution, such as ASG’s, is essential to meet the challenge quickly enough.
There are many benefits, but perhaps the biggest is confident compliance. The attendees at the webinar expected much more:
74%     -           Secure regulatory compliance
77%     -           A better understanding of data
53%     -           Better operations
41%     -           Reduction in redundant systems and costs
24%     -           New business opportunities
The first two benefits are what we would expect. It’s encouraging to see the expected value deriving from improved operations and reduction of redundancy. Data lineage reveals inefficiencies in business and technical processes, and duplication of information assets. Tracing the data lineage, eliminating redundancies and smoothing operations Saves costs and reduces the compliance workload.
To wrap all of this up; yes, Data Lineage is challenging – but the rewards are great. The need is urgent, and those who would divert you need to be firmly ignored!
If you want to watch the webinar, you can view the replay here.
Posted: 6/26/2017 5:59:53 PM by Ian Rowlands
Filed under :compliance, data, governance, Ian, intelligence, lineage, management, regulatory, Rowlands, webinar