Enabling traceability and transparency with standards-based regulatory reporting

Enabling traceability and transparency with standards-based regulatory reportingDr. Said TabetSenior Technologist and Industry Standards StrategistOffice of the CTO, EMC Corporation

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Agenda• EMC: a few words

• Regulatory reporting and the data issue

• Struggling with Ownership/Stewardship and their silos

• Regulatory reporting: • more than just a compliance exercise• Leveraging your reports for business performance and

insights

• Summary• Key insights from what we are seeing with our

partners in the market

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Brands

Fortune 500 Rank (2011 revenues) 139

Barron’s 500 Rank (2011 performance) 12

Revenues $21.7Bn

Cash and Investments (12/31/12) $11.4Bn

Market Value (2/6/13) $52.5Bn

Employees in 86 countries

Years in operation 34

EMC, VMware, RSA

60,000+

EMC Corporation is a global leader in enabling businesses and service providers to transform their operations and deliver IT-as-a-Service. Fundamental to this transformation is cloud computing.

Through innovative products and services, EMC accelerates the journey to cloud computing, helping organisations to store, manage, protect, and analyze their most valuable asset, information, in a more agile, trusted, and cost-efficient way.

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Global Regulatory Reporting: Problem Statement• The Problem of multiple regulations and

multiple jurisdictions is complex and increasing

• Business and IT– Struggling with ownership/stewardship and their

Silos• Data and XBRL’s Metadata Management

– Quality, Consistency, Integration, Common data model

– Efficiency and Timeliness of the collection process

• Compliance and Risk Taxonomy Absorption– Consumption, rendering, and secure archiving

needed– Vocabulary, definitions and cross-enterprise

alignment

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Regulatory Reporting – the challenge

SOURCE: OCEG Illustrated Series

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A transformational opportunity for stakeholders

Current State • Fragmented silos• Mostly reactionary• Individual projects • Separate from mainstream processes

and decision-making• Spreadsheets, spreadsheets, spreadsheets• Limited and fragmented use of technology

SOURCE: OCEG Illustrated Series SOURCE: OCEG Illustrated Series

Future State • Integrated management & performance• Proactive planning & execution • Integrated capability• Embedded within mainstream processes

and decision-making• Coordinated transactions & shared data• Architected solutions

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What is going on in IT?

Source: Forrester Research, Inc., IT Budgets and Priorities 2013, 25 April, 2013

72%Maintain

28%Invest

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The Business Drivers

LowerOperational

Costs

IncreaseRevenue

ReduceRisk

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Instead Of ‘Build Many - Report Many’

(c) OCEG Illustrated Series

Regulation A Regulation B Standard C

A1 A2 A3

C1 C2C3 C4C5 C6

C1 C2C3 C4C5 C6

C1 C2C3 C4C5 C6

DiscreteRisks, Regulations& Standards

DiscreteRequirements

DiscreteControls& Activities

SiloedFunctions& Departments

B1 B2 B3

C1 C2C3 C4C5 C6

C1 C2C3 C4C5 C6

C1 C2C3 C4C5 C6

C1 C2 C3

C1 C2C3 C4C5 C6

C1 C2C3 C4C5 C6

C1 C2C3 C4C5 C6

IT Business

Integration

IT

IT Business

Integration

IT

IT Business

Integration

IT

No Linkage

Weak Linkage

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Full Linkage

Strong Linkage

The Future is – ‘Build Once Report Many’

Regulation A Regulation B Standard C

A1 A2 A3

C1 C2C3 C4C5 C6

C1 C2C3 C4C5 C6

C1 C2C3 C4C5 C6

DiscreteRisks, Regulations& Standards

B1 B2 B3

C1 C2

C3 C4

C5 C6

C1 C2C3 C4C5 C6

C1 C2

C3 C4

C5 C6

C1 C2 C3

C1 C2

C3 C4

C5 C6

C1 C2C3 C4C5 C6

C1 C2C3 C4C5 C6

IT Business

Integration

IT

IT Business

Integration

IT

IT Business

Integration

IT

AB1

C1 C2

C3 C4

C5 C6

C1 C2

C3 C4

C5 C6

CommonRequirements

CommonControls& Activities

IntegratedFunctions& Departments

(c) OCEG Illustrated Series

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Managing the prudential data supply chain

National ServiceAgency Supervisor

HQTop Management

Syndicate

Supervisor of supervisorsLine of business

National ServiceAgency

Line of business

Aggregated/summarized data

Further aggregated/Summarized data

A need to ensure

consistency?

Full set of data

Internal Reporting - ERM External Reporting / Prudential - National Prudential – European Level

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What could this look like for you?Build once, report many; provenance of data is key

Quantitative Qualitative Disclosure

Analytical Models Workflow Tools

Submission and archiving capabilities

DATA DATA DATA

REGULATORS

DATA

Review, Approve,Archive

Analyse data

MDM, ERM, eGRC

XBRL Format, validate

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Convergence of key standards . . .

Including: XBRL Taxonomies and Extensions Legal Entity Identifiers (LEIs) Open Data Initiatives, Linked Data GRC-XML, as an XBRL Taxonomy for GRC Financial Industry Business Ontology (FIBO)

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Summary• Benefits of adopting XBRL

– Regulatory reporting costs significantly lower for future periods– Data mapping for any given regulator effectively done– Enhanced accuracy and quality of data

• Enhanced Transparency with:– Visibility

• Easy to capture errors, violations & problems– Simplicity

• Reduce regulatory burden/cost– Provenance/Traceability

• Easy to drill down to the source(s) of data– Consistency

• Trust your Regulatory Reports when you have a trusted supervision framework

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Thank You