tackling the big data problem
DESCRIPTION
An overview of big data in the financial market and how it effects a company's governance, risk and compliance strategy as well as three steps to managing big data and lowering associated risks.TRANSCRIPT
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Tackling the Big Data Problem
David A. FrankelChief Marketing Officer
EDGAR Online
• Our clients create, collect and consume data using EDGR software tools•We help companies:• comply with filing regulations• manage financial information• lower risk and lower compliance costs• gain control over and analyze information• implement more agile and effective GRC practices
Leader in disclosure management, financial data and GRC analytics solutions
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About EDGAR Online (NASDAQ: EDGR)
This frenzy has fueled the “big data” problem.
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EDGAR Online’s definition of “big data” – as it pertains to business:
“volumes of structured and unstructured data produced as a byproduct of operating a
company”
• Data is a new class of economic asset, like currency or gold• World Economic Summit – January 2012
• 1.5 million data-literate managers are needed• McKinsey Global Institute – 2011
• Those adopting data-driven decision-making achieve 5-6% higher productivity gains • MIT corporate study, “data-guided management” - 2011
“Big data” in business is here to stay…
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“Big data” is BIG – and it cannot be ignored.
“Big data” may pose opportunity, but it turns GRC on its head...
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• What you don’t know can hurt you – and you don’t know a lot.• Control, visibility and data
quality – are they lost forever?• Compliance budgets, risk –
ouch.• Who “owns” GRC? – finger
pointing is rampant.
GRC
Where GRC activity resides in organizations today.
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44%
19%
20%
17%
ITFinanceOperationsLegal
Source: Ponemon Institute Report on The Role of Governance, Risk Management & Compliance in Organizations
• Transform how you collect and classify data• A taxonomy will give you more agility and operational control
in accessing information in meaningful ways
• Standardize your data creation• Example: XBRL used in SEC filings and can be extended
companywide
• Implement standards-based analysis tools• Bring context to “big data” by presenting information in a
way that is semantically pure and relevant to the decision on hand
Leverage technology to:
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3 steps to managing the “big data” problem and lowering risk.
Implications of losing control and visibility…
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Proactively attacking “big data” is critical for GRC.
The largest settlements paid by 11 pharmaceutical companies for bending the rules total a staggering $6 billion.
Lehman teeters. After $229bn in bail-outs for Bear Stearns, and Fannie Mae and Freddie Mac, the US Treasury says it won’t part with more taxpayer money. Investors dump FS stocks.
We are all still paying for the lack of foresight in mortgage and lending. The right control, structure and analysis of data could have prevented a full-blown crisis.
• Regain control of your GRC efforts• Lower compliance costs• Filing and disclosure, audit readiness, data management, etc.
• Gain faster insight into and control over information as it’s created • Lower overall risk with increased visibility• Pinpoint and address issues • Identify and evaluate business trends• Better assess the impact of business decisions • See potential new opportunities
• Become smarter and more agile11
There are huge benefits to tackling this problem NOW.
www.edgar-online.comTwitter: @EDGAR_online
David A. [email protected]
Twitter: @DavidAFrankel
Thank you.