Financial reporting is required to report financial results that reflect the business activity of the enterprise, without a material difference. Regulatory reporting may also include delivering detailed data sets to regulators so that they can perform a capital adequacy stress test, and these data sets must reconcile to the financial statements. Both are based on the data collected by business operations, thus the capability is completely dependent on the accuracy of the business record. The business and the accounting rules change, and regulatory requirements change, thus flexibility is required. The process must be auditable, thus traceability and repeatability are needed.
We can help define and implement a flexible regulatory and financial reporting framework, and the data management capability needed to support the framework. A current state assessment against a framework is used to identify where investment is needed. A data management and architecture assessment is used to identify improvements in the management of data needed to efficiently support the financial and regulatory reporting function. The improvements identified can be implemented so that management reporting, credit risk, financial reporting and regulatory reporting capabilities are all improved.