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An industry ontology for risk data aggregation reporting
Journal of Securities Operations & Custody,
8
(2),
132-145
(2016)
Abstract
In response to the global financial crisis, the Basel Committee for Banking
Supervision (BCBS) has published a set of principles for risk data
aggregation reporting, known as BCBS239. This defines requirements for
systemically important financial institutions to demonstrate mature
governance of data. At the core of these is the need for common language. The
optimum way to meet this common language requirement is something called an
‘ontology’, ie a business resource that uses formal logic to define concepts.
Developing a business ontology requires techniques not typically found in
information technology. This paper shows how a business ontology can be used
for agile and timely risk data aggregation reporting. A freely available
standard called the Financial Industry Business Ontology (FIBO) lays much of
the groundwork for creating this kind of resource within a financial
institution.
Keywords: BCBS239; FIBO; ontology; risk; risk data aggregation; DCAM; language; data governance; DPM
The full article is available to subscribers to the journal.
Author's Biography
Mike Bennett is the founder of semantics consultancy Hypercube Ltd. and the semantics expert and ontologist for the Enterprise Data Management Council. He is the architect and originator of the Financial Industry Business Ontology (FIBO). His specialism is in the representation of business meaning in ontologies that may be used in systems design and integration. He represents the EDM Council within the Object Management Group and on ISO technical standards committees and is the co-chair of the Semantic Web Applied Ontology Special Interest Group within the International Association of Ontology and its Applications (IAOA). Mike has around 20 years of financial industry experience with investment management software, data management systems design, messaging standards, test and project management, and is well-regarded as both a resource and speaker within the semantic technology community.
