Post on 16-Apr-2017
Building the Chief Data Officer Toolkit
Consumer Financial Protection BureauChief Data Officer Forum, GovernmentLinda Powell, CDO CFPB
This presentation is being made by Consumer Financial Protection Bureau representatives on behalf of the Bureau. It does not constitute legal interpretation, guidance or advice of the Consumer Financial Protection Bureau.
Note: This document was used in support of a live discussion. As such, it does not necessarily express the entirety of that discussion nor the relative emphasis of topics therein.
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Overview of the CFPB
We educate, enforce, and study Promote financial education Conduct rulemaking, supervision and
enforcement with respect to the Federal consumer financial laws
Handle consumer complaints and inquiries Research consumer behavior, and Monitor financial markets for risks to
consumers
Data-driven analysisThe CFPB is a data-driven agency. Our aim is to use data purposefully, to analyze and distill data to enable informed decision-making in all internal and external functions.
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The Role of the CDO Office
Business Technology
Data is the link between the organization’s mission and the technology necessary to accomplish the mission. The business strategy and goals drive the data strategy which informs the technology choices for infrastructure and applications.
Data
What infrastructure do you need to do data driven analysis?Maslow’s /Data Hierarchy of Needs
portalBI
Analytics
Tool kits (Stata)
Masterdata
Security & QA (data & analysis)
Governance & Standards
PRA & Privacy
Metadata (dictionaries, catalog)
Data Platform (servers, warehouse)
Food and water
safety
Love/belonging
Esteem
Self actualization
Where most data
users try to start
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Data Governance The exercise of authority, control, and shared decision-
making over the management of data assets. (DAMA Dictionary)
Data Governance Structure at the CFPB: Information Governance Policy
• Defines scope of data and delegation of responsibilities• Empowers the Data Governance Board• Provides guidelines for information intake, centralized
storage, and access rights• Provides an overview of Discusses information disclosure
Data Governance Board Data Intake Group Data Governance Team
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Data Architecture
The business needs should drive the architectureQuestions to ask yourself:• How much data do I expect to have?• How often do I need to update the
data?• Do updates need to be real time or
next day?• How do I want to access data?• How complex are my data?• Is my data structured or
unstructured?• Do I need to see history or do I only
need the current data?• How long do I need to keep data?
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Data Operations
Start with the answers to the architecture questions Develop intake processes Develop quality assurance processes
Ensure data manipulation doesn’t introduce errors Determine the business needs related to quality
• Is precision to $1,000 sufficient or is precision to .0001 necessary?
Evaluate if it is helpful to have a quality rating Document processes Maintain metadata
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Business Intelligence and Analytics
• Start with the business need
• Choose the right tool for the problem
• Partner with the business to continuously refine requirements
• Continuously iterate and improve
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Data Strategy – Where to Start
The organization’s mission Talk to the business lines
What capabilities are they trying to build What information do they have that is helpful What information don’t they have What topics or analysis are they planning in the next
five years How do they work with data today – is that sufficient What would make their lives easier and more effective
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Do a Baseline Assessment on Practices
On the left is the DAMA wheel of data management practices. Assess your organization.
Practices in place• what practices are robust•what practices are in production
Practices being created•what is built but not robust•what are you designing
Practices that need development•what isn't working•what haven't you started•is there something you forgot
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Understand the Business
The Industry Your organization’s role in the industry Management’s goals and objectives
Increase market share Maximize shareholder profit Do good in the world Support an agenda Meet the organization’s mission
What risks are management sensitive to Market changes Economic conditions Internal issues
Speak the same language Translate technical jargon to business jargon
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Talking to the Business
Business lines don’t generally think in terms of data Many business lines think in terms of processes or
applications Help figure out what data are needed to make the process or
application effective Help define what is the goal to determine the data inputs
needed Organize needs into categories
Data assets Processing environment Governance processes
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Put things in context
How much data is a lot?1 terabyte of data is about equal to the Library of Congress’ print collection. How many terabytes of data are you managing?
Why is my system so slow?We are trying to push a watermelon through a garden hose. We need to cut it up, feed it through, and reassemble it at the end.
Why don’t we just ask for whatever data they have?Imagine I asked everyone to give me 1 paragraph on their summer vacation. Then, if I tried to compare where people went, the dates they traveled, and who they traveled with – I didn’t ask for what I need so my analysis will be difficult, inaccurate, or impossible.
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Results from the CFPB Data Strategy
Started with the CFPB’s strategic documents The business lines are very diverse Identified common needs across the Bureau
Data documentation (metadata) Data standards Storage environment Processing environment Master data Governance processes
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Office Specific Needs
Broke down each office’s needs into three categories: Data management and storage
Specific data assets Markets for which we will need data Technical environment needs
Data analytics Analytical tools or projects Dashboards, visualizations, integration
Data policy Governance that would help clarify roles or make
processes more efficient
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Educate
The work doesn’t end when you write the policy or document.