Financial Data Engineering

Chapter 5. Financial Data Governance

As financial markets expand, so do the methods and use cases for how financial data is collected, stored, and used. This has generated concerns within the financial industry as well as broader governing bodies that are pushing for solid data controls, quality assurance, privacy rules, and increased security measures. As a result, data governance frameworks have emerged as a promising approach to defining and implementing rules and principles for guiding data practices within financial institutions.

This chapter will provide a practical framework for financial data governance based on three key components: data quality, data integrity, and data security and privacy. First, I’ll cover the basics of financial data governance. Then, I’ll go into depth about each of the three components in the sections that follow.

Financial Data Governance

Data governance is critical to securing financial data, ensuring regulatory compliance, and fostering trust among stakeholders. By implementing robust data governance practices, financial institutions can safeguard sensitive information, adhere to legal requirements, and maintain the integrity of their financial operations.

Financial Data Governance Defined

Before defining what financial data governance is, let’s examine a few existing definitions. For example:

Data governance is everything you do to ensure data is secure, private, accurate, available, and usable. It includes the actions people must take, ...