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IBM's Banking Data Warehouse and Basel II

IBM
By : IBM
INFORMATION
Published : Dec 01, 2005
Length : 27
Type : White Paper
 
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Overview :

Financial institutions are facing a series of related risk and compliance challenges. These include Basel II and IFRS/IAS.  The pace of change driven by the compliance challenges will be different across financial institutions. However, there is now a general recognition that the long term direction of aligning economic and regulatory capital means that risk weighted asset and economic capital calculations should eventually become a key driving force for decisions within the financial institution.

This white paper will outline the components of the Banking Data Warehouse (BDW) and how they assist financial institutions to address the data modeling and data consolidation issues relating to the Basel II Capital Accord. 

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Browse Related Categories :

Auditing

,

Business Intelligence

,

Compliance

,

Customer Experience Management

,

Data Management

,

Data Protection

,

Data Warehousing

,

Document Management

,

Encryption

,

IT Management

,

Information Management

,

Knowledge Management

,

Policy Based Management

,

Records Management

,

Sarbanes Oxley Compliance

,

Secure Content Management

,

Security

,

Security Management

,

Security Policies

,

Software Compliance

 
Executive Summary

Today's business environment requires ad hoc and instantaneous sharing of information. Driven by new applications that create massive amounts of data as well as globalization, systems for sending large files have not kept up with the business need.

A new solution, a Secure File Transfer Appliance, has been developed to provide a compliant, easy to use and easy to manage system to send large files. Companies who use it have eliminated FTP servers, improved the performance of e-mail, reduced storage requirements, and created compliant business processes.

The Continuing Challenge and Need of Sending Large Files

Today's business environment is changing more rapidly than ever before. Globalization and increased competition are driving new business models and collaboration needs. For example, outsourcing is creating new demands to synchronize business processes across companies and increase the sharing of information.

Finally, many business processes have changed so rapidly that the supporting IT systems are out of sync with the businesses they support. While people used to rely on corporate systems to integrate a company, we are now seeing much more data being shared outside the formal IT systems, using alternative or non-standard solutions. While some organizations have resorted to more cumbersome and costly solutions, such as CD burning and overnight mail, most companies need to move at electronic speed and have turned to a very unlikely tool to send their data: FTP.

Why FTP Falls Short For Today's Business Requirements

FTP, or File Transfer Protocol, was one of the first protocols generated by the early Internet back in 1973. FTP was developed so that people could share files between computers on the Internet. It was designed by programmers to share files with other programmers with the usage metaphor of manually copying files through a command line
interface. It rapidly became a ubiquitous programmer tool but it is very unlikely that it scalable business would ever have become a business tool had there existed reasonable alternatives.

For business collaboration, FTP is often unfamiliar, inconvenient, and difficult to fit into the normal work flow. However, FTP falls short as a scalable business application in several other areas that are more serious and costly than inconvenienced business users.

Lack of security is the most dangerous shortcoming of FTP

When FTP was designed, the security environment was much more benign. Now, with the need for greater controls and tracking digital assets, FTP represents a security risk for most companies. Security and control have become the responsibility of the over taxed IT administrator who must minimize file exposure to the wrong parties, delete files, setup and manage accounts, maintain complex file directories, and securely distribute passwords. Frequently, the system breaks: passwords are shared amongst multiple users, files are left for months in the FTP directories, and confidential documents may be exposed. Many of the security vulnerabilities have been alleviated with new flavors of FTP (e.g. SFTP, FTPS, EFTP) which typically require that special client programs be
installed on user's computers. However, requiring ad-hoc recipients to install a program greater controls and for file delivery imposes a time consuming overhead, which limits adoption.

Apart from administration overhead, this causes further security issues because users start sharing accounts and passwords and outside recipients have login access to a computer behind the corporate firewall.

File management on FTP servers is an administrative burden

Over time, FTP directories tend to fill up as people upload more files. The problem is that people who up-load files rarely remove them. The result is directories of hundreds of large files and little knowledge as to when one should be deleted. The FTP administrator will likely guess based on file name, type and date with somewhat unpredictable results and potentially upset users. Because of the lack of automatic cleanup of files in FTP, valuable digital assets are frequently left unprotected in an FTP directory for extended periods.
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