Data, Analytics and Reporting Requirements: Challenges and Solutions

John P Haley and Thomas Day

The 2007–09 financial crisis highlighted the difficulty, and at the same time the importance, of ensuring banks have adequate capital for economic downturns. In the wake of the 2009 Supervisory Capital Assessment Program (SCAP) report and throughout the Comprehensive Capital Analysis and Review (CCAR) 2011–13 cycles, the majority of the stress-testing effort went into enhancing analytical modelling. However, the focus has shifted toward making the process sustainable, repeatable and resilient. This chapter will discuss the implications this shift in focus has for data – not only its capture, but its governance and how to make it accessible to multiple constituents. Although technology will be an important part of the solution, it will also require re-thinking basic business processes. Additionally, to gain the full value of this investment, even the interaction with the customer must change. Data governance, quality and capture will need to be considered at earlier stages of the data supply chain, beginning as early as the point of risk origination. Banks are in the business of taking risk – any insight that improves their ability to make those decisions will lead to a competitive