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More About This Title Financial Institution Advantage & the Optimization of Information Processing
English
A PROVEN APPROACH FOR CREATING and IMPLEMENTING EFFECTIVE GOVERNANCE for DATA and ANALYTICS
Financial Institution Advantage and the Optimization of Information Processing offers a key resource for understanding and implementing effective data governance practices and data modeling within financial organizations. Sean Keenan—a noted expert on the topic—outlines the strategic core competencies, includes best practices, and suggests a set of mechanisms for self-evaluation. He shows what it takes for an institution to evaluate its information processing capability and how to take the practical steps toward improving it.
Keenan outlines the strategies and tools needed for financial institutions to take charge and make the much-needed decisions to ensure that their firm's information processing assets are effectively designed, deployed, and utilized to meet the strict regulatory guidelines.
This important resource is filled with practical observations about how information assets can be actively and effectively managed to create competitive advantage and improved financial results. Financial Institution Advantage and the Optimization of Information Processing also includes a survey of case studies that highlight both the positive and less positive results that have stemmed from institutions either recognizing or failing to recognize the strategic importance of information processing capabilities.English
SEAN C. KEENAN, PHD, is Senior Managing Director-Model Risk Management at a leading international insurance organization. Prior to joining this organization, he was the Quantitative Risk Analytics Leader at GE Capital, Vice President in the Risk Architecture Group at Citigroup, Vice President at Moody's, and Senior Econometrician at Loan Pricing Corporation.
English
Introduction ix
Acknowledgments xv
Chapter 1 Financial Institutions as Information Processors 1
Financial Institutions’ Raison d’Être 1
Cultural Issues 6
IT Literacy and the Spreadsheet Deluge 13
Other Challenges to Establishing an IT-Savvy Culture 19
Notes 25
Chapter 2 Strategic Hardware and Software Management 27
Overview 27
An Integrated Data Architecture 41
Information Processing Efficiency as an Institutional Objective 52
A Digression on Unstructured Data 58
Notes 60
Chapter 3 Data, Models, and Information 61
Model Risk Mania 61
Definitions and Epistemology 69
Data Quality 73
Models and Their Role 79
Regulatory Regimes and Guidance 88
Notes 99
Chapter 4 Model Risk Measurement 101
Three Phases of Model Management 102
Model Governance 103
Defining Model Risk 105
Objectifying the Downside 108
Model Risk Attribution: An Information Entropy Approach 121
Notes 126
Chapter 5 The Return on Analytic Assets 127
Measuring the Productivity of Models 128
Complementarity of Data Inflow with Information Processing 132
A Digression on Price Taking 134
Notes 135
Chapter 6 Data Risk Measurement 137
Strategic Data Acquisition 139
The Information Conversion Rate 140
Other Approaches for Data Risk Assessment 142
Notes 143
Chapter 7 A Higher Level of Integration 145
Alternate Views of Integration 146
Identifying Key Information Cycles 146
An Integrated Physical View 149
Multidimensional Information Asset Management 151
Chapter 8 A Strategy for Optimizing the Information Processing Complex 155
Evaluation 156
A Path toward Improvement 160
Notes 167
Chapter 9 Case Studies 169
The Pricing of Automobile Insurance 170
Moody’s KMV 174
The London Whale 177
The Mortgage-Backed Securities Disaster 178
The Value of Annuities 180
Notes 182
Chapter 10 Conclusions 183
References 189
About the Author 193
Index 195
