APRA has published an article highlighting better data practices as a risk management tool to comply with guidance in CPG 235 on Managing Data Risk, and data featuring as a key risk type in CPS 234 Information Security and in CPS 230 Operational Resilience.

APRA’s research with industry on the topic of data management highlights six factors for businesses to consider when improving data management:

• Establish data governance with a unified data strategy.
• Provide clarity on roles and responsibilities for ownership of critical data elements and processes across the data lifecycle.
• Simplify the technology and data architecture environment through improved platform solutions and by decommissioning legacy assets.
• Identify critical data elements and create a consistent set of data controls.
• Establish mechanisms to monitor data quality and timely remediation of errors based on business requirements.
• Integrate data management risk into risk management frameworks.

APRA says that:

“recent cyber events leading to customer data leakages and entity data breaches in the industry have highlighted the importance of data storage, deletion, and security, all of which require a sound understanding of the data environment and quality of data….

Quality data is an asset to a business. It can provide valuable insights, predict trends, and identify commercial opportunities. It can measure performance, help a business customise its products and services, optimise processes, and increase profitability – but like any tool, it only works well if used and managed appropriately.

The costs of poorly managed data can manifest through misinformed decisions, increased errors, customer complaints, and even regulatory action – the impacts of which can result in reputational damage, and loss of customers and profit. For banks, insurers, and superannuation funds, access to high quality data can make a significant difference in the accuracy of decisions made across the organisation. Conversely, decisions made based on poor quality data can have lasting negative impacts.”

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.