Data underpins the operations of every financial institution. So when data is left un-checked, it poses significant operational risks. At best, an erroneous data point might trigger a broken transaction. At worst, it could have much graver implications for the profitability of a business.
To address those risks, firms need systems and processes to ensure data sources are properly validated. They need to ensure the enterprise collaborates in its pursuit of higher data quality. And that requires transparency. Data accuracy can be subjective. Different teams may price an instrument using different models or inputs. Simply knowing those differences can help reconcile any potential impasse.
Operational risks are also particularly prevalent in the way firms use spreadsheets. Spreadsheets have proliferated across most financial institutions for a very good reason. They are flexible, incredibly user-friendly and provide the perfect sandbox for quickly building models and carrying out basic analysis. However, the use of spreadsheets in production trading environments poses significant risks. It leaves organisations more exposed to information security breaches or manual errors resulting from improper access controls. Equally, they are typically fed with un-validated data from a single source.
TimeScape EDM+ allows enterprises to feed spreadsheet models with gold copy data that has passed through necessary steps for validation and cleansing. For firms looking to reduce their reliance on spreadsheets altogether, TimeScape EDM+ can take models created within a spreadsheet, and run them on server-side technology, with the right audit, process and access controls to ensure operational risks are minimised.