| IBM Council predicts five key information challenges
The predictions are: * Data governance will become a regulatory requirement in an increasing number of countries and organizations. In some countries, organizations will have to demonstrate data governance practices to regulators as part of regular audits. This will likely affect the banking and financial services industries first, and will emerge as a growing trend worldwide. * The value of data will be treated as an asset on the balance sheet and reported by the chief financial officer while the quality of data will become a technical reporting metric and key IT performance indicator. New accounting and reporting practices will emerge for measuring and assessing the value of data to help organizations demonstrate how data quality fuels business performance. * Calculating risk will be used more pervasively across enterprises for small and large decision-making and will be increasingly automated by information technology. Today in most organizations, risk calculation is done by a select group of individuals using complicated processes. In the future, risk calculation will be automated providing greater transparency to more easily examine past exposure, forecast direct and indirect risk, and set aside capital to self-insure and cover risk. * The role of the chief information officer (CIO) will change, making this corporate officer responsible for reporting on data quality and risk to the board of directors. The CIO will have the mandate to govern the use of information and report on the quality of the information provided to shareholders. * Individual employees will be required to take more responsibility for recognizing problems and participating in the governance process to facilitate greater operational transparency and the identification of risk. They will be aided by new categories of operational software that will demonstrate common data governance problems and allow employees to self-govern; sponsor and vote on new policies; provide feedback on existing ones and participate in dynamic data governance. The IBM Data Governance Council is a group of 50 global companies that have pioneered best practices around risk assessment and data governance to help the business world take a more disciplined approach to how companies handle data.
•Date: 11th July 2008• Region: World •Type: Article •Topic: Operational risk
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