Improving Compliance Program With Data Mapping

Improving Compliance Program With Data Mapping

You might be asking how does data mapping improve the compliance program.  Well the intent of the compliance program is to secure the firm from any regulatory risks and to make sure the firm as well as employees are in compliant with applicable regulations. 

Data mapping will allow the firm to understand the type of information or data it produces, maintains and collects. 

Given that financial firms have the fiduciary duty to act in the best interest of the clients, firms must make sure that client information are secure and considered confidential. 

  • According to the SEC, firms must safeguard client assets from conversion or inappropriate use. If you do not know the life cycle of the data that you collect how do you live up to your obligations?  
  • Moreover, the SEC calls for firms to safeguard “for the privacy protection of client records and information”. How would financial firms maintain the privacy of the data without identifying all client related data?  
  • Finally, the SEC requires firms to preserve the “the accurate creation of required records and their maintenance in a manner that secures them from unauthorized alteration or use and protects them from untimely destruction”.

So without identifying all your data how would you enforce your compliance policies?

It is important for firms to stay on top of the data that they collect, produce and store. Not only is it a regulatory requirement but it is also a sound business practice. Knowing that firms go through so many changes throughout the course of their operations data mapping should be a continuous practice.

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