Financial services firms already are struggling to manage their vast and ever-growing data stores in a way that satisfies existing privacy and regulatory requirements, but in the wake of the Dodd-Frank Act, this task will get exponentially more complex. As firms look to achieve greater transparency, as they seek to determine and expose actual risks, the challenge of wading through information detritus to find the handful of valuable nuggets will make finding a needle in a haystack seem a relatively painless task.
In the end, successfully adhering to the letter and spirit of the Dodd-Frank Act requires financial services firms to do a far better job of knowing what information they have and where it is. The only way to do this is to develop a practical strategy for disposing of the mountains of information that have no legal obligation, regulatory requirement or business value. But how is this possible? Isn't disposing of information by definition taking a risk of compliance failure?
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