Improve Insight into Counterparty Risk with Legal Entity Reference Data Management

Legal entity reference data enables banks to measure exposure from counterparty defaults and helps regulators to monitor and manage the systemic health of global financial markets. In the wake of the 2008 credit crisis, regulatory changes in the banking industry have elevated the importance of ensuring that this data is accurate, comprehensive, and consistent.

Unfortunately, legal entity reference data issues that have long plagued the industry persist to this day. Disparate sources of the truth, fragmented and inconsistent information from third party data providers, and lack of governance controls to manage this critical information at the enterprise level are just some of the sources of these challenges. With the imminent rollout of the new Global Legal Entity Identifier, banks will need to access, integrate, reconcile, cross reference, and deliver legal entity reference data that’s complete, accurate, and consistent across the enterprise. Doing so requires capable and scalable reference data management technology.

The Informatica Solution for Legal Entity Reference Data Management

The Informatica solution for legal entity reference data management reduces financial exposure, ensures compliance with new mandates, and improves insight into your financial institution’s counterparty risk. It achieves all this by leveraging industry-leading data integration, data quality, and multidomain master data management software.

With this solution, you can:

  • Manage and deliver accurate, comprehensive, and consistent legal entity reference data for ongoing risk management and compliance with such mandates as the Dodd-Frank Act and Basel III
  • Onboard the new legal entity identifier and cross reference it with existing legal entity information and identifiers to create a single source of the truth
  • Associate legal entity relationships across securities instruments, and manage accurate and comprehensive legal hierarchy structures
  • Deliver and syndicate this data to any system in any format, latency, or structure

Key Capabilities of Legal Entity Reference Data Management

Unlike homegrown legal entity reference data management systems or those offered by existing vendors, the Informatica solution is built to meet the needs of today’s financial industry. It accelerates business value, ensures compliance with industry regulations, and reduces IT and operations costs.

The Informatica solution for legal entity reference data management is based on a single, comprehensive platform and features the following capabilities:

  • Enterprise data integration to access and integrate legal entity data to and from internal and external sources in any format, structure, or latency
  • Industry-leading master data management including:
    • Prebuilt, yet customizable data models for existing legal entity data, including the new legal entity identifier data set
    • Predefined matching rules to cross reference existing legal entity master and reference data to the proposed legal entity identifier record
    • Built-in data stewardship console to manage legal entity reference data definitions and exceptions
    • Business user-friendly legal entity hierarchy management visualization tools
  • Robust data quality discovery and profiling for data stewards and analysts to identify data quality errors from upstream systems
  • Data quality management and governance to continuously maintain the trustworthiness of data, correct errors, and manage ongoing data quality performance
  • Customizable data quality dashboards and proactive monitoring to identify and alert data stewards to data errors that require immediate attention