Regulatory compliance is a critical consideration for businesses, especially in heavily regulated sectors such as financial services and pharmaceuticals, which require companies to frequently submit detailed reports about their operations to government agencies.
Compliance often requires a significant investment of resources. Not only must organizations adhere to strict deadlines, but top executives, such as CEOs and CFOs, need to ensure that the submitted information is as accurate as possible. This challenge is further complicated by the fact that the data needed for these reports is usually scattered across many different systems, which may be in different countries.
Traditional Methods of Regulatory Reporting
To collect data for regulatory filing, companies often transfer the necessary data from various data sources into one centralized system. However, this requires significant time and resources, and by the time the data has been replicated into the central location, it may already be out of date with one or more of the source systems. Also, during the transfer process, which can involve any number of transformations, data can lose some of its accuracy, or even be distorted, which can undermine its reliability.
The Solution: Logical Data Management
Logical data management offers a modern, transformative approach to integrating data for regulatory reporting. Rather than physically moving data from various sources into one place, logical data management uses data virtualization to connect to the data wherever it is and provide a logical view of that information. Organizations can easily run their reports based on such views and submit them to the relevant authorities.
This method has several advantages. First, it is much faster than traditional methods, as it does not involve physically moving data from one place to another. Also, data quality and accuracy are maintained because the data remains in its original location(s). Because there is no delay in centralizing the data using virtual views, it is always up-to-date, as it provides a real-time view. Finally, it is compliant with data privacy regulations that prevent data from being moved overseas.
The Future of Regulatory Reporting with Logical Data Management
Many companies have successfully leveraged logical data management approaches to meet regulatory requirements. Supported by data virtualization, it offers a powerful, efficient, and reliable alternative for regulatory reporting.
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