This white paper outlines the components of the Banking Data Warehouse (BDW) and how they assist financial institutions in addressing the data modeling and data consolidation issues relating to the SOX regulations.
June 2005 Banking Data Warehouse and the Sarbanes-Oxley Act Whitepaper Page 2
About this Paper The purpose of this paper is to outline the components Contents of the Banking Data Warehouse (BDW) and how they assist financial institutions to address the data modeling and data consolidation issues relating to the Sarbanes -Oxley Act. This paper is divided into the following chapters: Chapter 1, "Data Integration and the Banking Data Chapter 1 Warehouse" summarizes the benefits of the BDW as a Data Integration and the Banking Page 3 central data repository for the financial institution. Data Warehouse Chapter 2, "BDW support for the Sarbanes-Oxley Chapter 2 Act" summarizes the enhancements to BDW v3.3 and BDW support for the Sarbanes- Page 6 how these address the issues raised by the Sarbanes -Oxley Act Oxley Act. Chapter 3 Chapter 3, "Banking Data Warehouse Components" Banking Data Warehouse Page 8 outlines each of the BDW components. Components Chapter 4, "BDW Components and the Sarbanes-Chapter 4 Oxley Act" describes briefly an overall functional BDW Components and the Page 14 architecture for Sarbanes -Oxley and how each of the Sarbanes-Oxley Act Architecture BDW components fit into this architecture.
Banking Data Warehouse and the Sarbanes-Oxley Act Whitepaper Page 3 Data Integration and the Banking Data Warehouse
Financial Institutions are facing a series of related risk and compliance challenges. These include: · Sarbanes -Oxley Act · Basel II · IFRS / IAS
All of these different regulatory initiatives require data to be collected, analyzed and reported in different formats and under different timescales. Much of the data needed for one regulatory regime may also be required for the other regimes. It is obvious In an increasing competitive and that if the data collection can be performed only once and made regulatory environment, financial available in integrated shared structures, then the task of institutions need a single view of their producing multiple different analytical reports will be greatly business information. simplified. Further, since all reporting will be sourced from the same data, then all business, regulatory and compliance reports will be consistent with each other.
The Sarbanes -Oxley Act (SOX) places particular and specific needs on the CEO and CFO of a business to ensure that the financial results they are reporting are accurate and available in a timely fashion. Section 302 requires the CEO and CFO to state quarterly and Sarbanes-Oxley requires accurate and annually that inter alia: the financial statements do not contain complete financial information, any untrue statements or omit any material facts that would available in a timely fashion make the statements misleading; the financial s tatements fairly present the financial position, cash flows and operations; that procedures and controls in the formation of the statements are in place and are capable of being audited. While such declarations are mitigated by a "to the best of their knowledge" clause, it is likely that a "if they didn't know, they should have known" regime will be applied. Section 404 requires that critical financial systems must be under strict controls and that the annual report must contain a statement signed by the CEO and CFO that any filings with the SEC are accurate. If such a statement is later proved to be false, then a jail term is a possibility. Section 408 requires the business to able to demonstrate at least every three years that no disclosures are missing or incomplete.
Banking Data Warehouse and the Sarbanes-Oxley Act Whitepaper Page 4 Section 409 requires that material events must be timely and accurately disclosed by the financial institution. Material events must be reported within 48 hours. A material event would include, for example, the bankruptcy of a large obligor or the collapse of an economy in which the financial institution has cons... [download for more]
