Welcome to part 3 of Solvency II Standards for Data Quality – common sense standards for all businesses.
Regardless of the industry you work in, you make critical business decisions based on the information available to you. You would like to believe the information is accurate. I suggest the CEIOPS’ standards for “Accuracy”apply to your business, and your industry, just as much as they apply to the insurance industry. I would welcome your feedback…
The CEIOPS (now renamed EIOPA) advice makes it clear that Solvency II requires you to have Data Governance in place (which CEIOPS / EIOPA refers to as “internal systems and procedures”). The following sections of the document make this clear:
3.32 In order to ensure on a continuous basis a sufficient quality of the data used in the valuation of technical provisions, the undertaking should have in place internal systems and procedures covering the following areas:
• Data quality management;
• Internal processes on the identification, collection, and processing of data; and
22.214.171.124 Data quality management – Internal processes
3.33 Data quality management is a continuous process that should comprise the following steps:
a) Definition of the data;
b) Assessment of the quality of data;
c) Resolution of the material problems identified;
d) Monitoring data quality.
I will explore the above further in my next post. Meanwhile, what Data Quality Management processes do you have in place? Do you suffer from common Enterprise-Wide Data Governance Issues?