Data Analysis (Risk Audit and Reporting)
Our fully automated data analysis service uses our own unique proprietary software - DAaRT (Data Analysis and Reporting Tool) - which can accommodate any administration database. DAaRT can be used for end-to-end data migration or standalone data analysis, the latter producing a detailed risk report highlighting over 350 predefined criteria search queries. DAaRT is fully scaleable and flexible to incorporate bespoke search queries and reporting. Standard reporting highlights all analysed data and categorises this into 'high', 'medium' and 'low' priority. DAaRT can be used for DB, DC and Hybrid schemes and is also ideal for both group and individual insurance business.
Each item of data analysed is assigned a 'criticality value' which enables you to input and view a true picture of your data in RAG (Red, Amber, Green) format, with the most important areas and errors highlighted in the risk reports that we provide on completion of the analysis. We also provide a detailed breakdown of the data errors for correction, a cleansing index and commentary on the analysis undertaken, key risk areas and recommended mitigating actions.
Examples of the RAG and Summary report output are shown in the DAaRT screen shots below.
DAaRT: Data Analysis Reporting Tool
The benefits of ITM's data analysis, risk audit and reporting service
The data analysis, risk audit and report can be undertaken as a one-off project or as part of an annual health check, incorporated into your governance and risk management programme. The benefits of undertaking an independent audit of your membership data are:-
- Complies – with the Regulator's expectations.
- Provides – a comprehensive understanding on the completeness and accuracy of all membership data for all beneficiaries.
- Creates – an opportunity to economically cleanse the data (if necessary) via an automated facility.
- Enables – accurate liability quantification for all beneficiaries leading to a more accurate actuarial valuation, directly impacting scheme financing.
- Results – in confidence to accurately calculate and pay correct entitlements to the right beneficiaries at the right time.
Examples of some of the instances where ITM has undertaken a data analysis, risk audit and report for clients
Before change of administration provider
This represents a key part of the risk management process for all stakeholders involved when considering a change of administration provider. The analysis provides a standard data quality process for trustees and all other parties involved in the selection process.
Before switching provider it is important to ascertain if data is the key cause of existing difficulties.
Quality of data is key to successful administration - a significant amount of money and angst can be saved by achieving a comprehensive understanding of the data and issues arising before going out to tender.
Data analysis prior to administration review
This represents a key risk management process for all stakeholders.
The analysis provides a standard data quality process for ALL trustees in the selection process.
Before switching provider one needs to ascertain if data is the key cause of existing difficulties.
Quality of data is key to successful administration - a significant amount of money and angst can be saved by performing this relatively inexpensive process.
Data due diligence as part of tender
This represents a key risk management process for both trustees and administrators.
ALL tenderers should be provided with a standard analysis output on which to base fees and timescales.
By adopting this approach a commonality of purpose to put right issues exists between the trustees and new administrator.
The analysis provides an INDEPENDENT assessment of data and increases the potential for ongoing admin to be right as of 'A' day.
Data analysis on wind up
An essential part of any wind up specialist's kit.
The results provide early warning of any data issues that may impact on the wind-up process and enable accurate quantification of any unseen costs pre analysis.
Generic issues found will result in a higher level of consistency of approach.
Our data analysis, risk audit and reporting process has been designed to complement all regulatory reporting requirements.
An early review of data can only provide reassurance to scheme members and managers.
Data benchmarking
This allows you to benchmark your data against an industry standard based on over 350 generic queries after an analysis has been completed.
The benchmark statistics cover both in-house and TPA providers and potentially cross all systems.
The benchmark is populated from all types of schemes across the whole of the industry and is available in a format which displays the results weighted by scheme design complexity.
DAaRT: Benchmarking
Each system run is benchmarked against the ITM standard which is a set of results across all analyses. This can be customised per template or even per client.
Ongoing data healthchecks
Our service can be undertaken on a regular basis, perhaps annually, enabling you to check data on an ongoing basis and benchmark progress in data cleanliness year on year by comparing current results against those from previous data analysis.
We can also check data feeds from interfaces for accuracy.
DC Reconciliations
DC administration provides its own challenges. Reconciling contributions with unit histories on an individual level and at scheme level is a critical risk management exercise.
The ability to track and monitor units against contributions is essential.
Detecting and then amending where contributions may have got out of line with units is essential.
ITM's approach provides a thorough and tested method.
