This post is one of a series dealing with common Enterprise Wide Data Governance Issues. Assess the status of this issue in your Enterprise by clicking here: Data Governance Issue Assessment Process
Different Business Units sometimes use different business rules to perform the same task.
Withing retail banking for example, Business Unit A might use “Account Type” to distinguish personal accounts from business accounts, while Business Unit B might use “Account Fee Rate”.
Impact(s) can include:
- Undercharging of Business Accounts mistakenly identified as Personal Accounts, resulting in loss of revenue.
- Overcharging of Personal Accounts mistakenly identified as Business Accounts, which could lead to a fine or other sanctions from the Financial Regulator.
- Anti Money Laundering (AML) system generates false alerts on Business Accounts mistakenly identified as Personal Accounts.
- AML system fails to generate alert on suspicious activity (e.g. large cash lodgements) on a personal account misidentified as a Business Account, which could lead to a regulatory fine.
- Projects dependent on existing data (e.g. AML, CRM, BI) discover that the business rules they require are inconsistent.
Agree and implement the following Policy: (in addition to the policies listed for Data Governance Issue #10)
- Responsibility for resolving cross business unit business rule discrepancies lies with the Enterprise Data Architect.
For further details on Business rules – see Business Rules Case Study.
Have you faced a situation in which different business units use different business rules? Please share your experience by posting a comment – Thank you – Ken.