Why Does KYDS Matter?
Many data consumers are well-versed in client and financial regulations, but data lineage and provenance – understanding the origin and history of your data – often remains a challenge. Here’s why taking KYDS seriously is essential for your business:
Mitigate Risk and Cost: Following the data trail lets you identify your true data suppliers and understand your financial exposure. This transparency can help you avoid unnecessary costs and stop any potential risks associated with unknown suppliers.
Ensure Data Quality: Confidence in your data is paramount for informed decision-making. KYDS fosters trust by giving you a clear picture of your data sources, provenance, and lineage.
Implement Best Practice Data Governance: Understanding your data sources is crucial for managing Intellectual Property Rights (IPRs), licences, and permitted usage. KYDS ensures compliance with data governance best practices.
Validate Your Business: Implementing KYDS helps you confirm that data consumers are receiving the right data at the right price, for the right purpose. This validation strengthens your business practices.
The Risks of Ignoring KYDS:
Failing to prioritise KYDS can lead to a range of negative consequences, including:
Hidden Costs: Unidentified data sources can lead to inflated costs due to unnecessary expenditure or inefficient data usage.
Resource Fragmentation: Scattered and poorly managed data sources can strain resources and hinder efficient data workflows.
Permitted Usage and Contract Risk: A lack of understanding about data source permissions can lead to breaches of contract and potential legal issues.
Data Concentration and Risk: Relying on a limited number of data sources creates a single point of failure and increases vulnerability.
Damaged Relationships: Unclear data provenance can erode trust and damage relationships with providers and consumers.
Unlocking the Value of Your Data:
KYDS is more than just a compliance exercise. It’s a strategic approach that unlocks the true value of your data. By understanding your data sources, you gain deeper insights, leading to more informed decisions and improved decision-making.
IPCL: Your Trusted Partner in Data Management
At IPCL, we provide advanced thought leadership on market data issues, including KYDS implementation. Contact us today for a free no-obligation discussion about how KYDS can benefit your business.
Don’t wait until a data-related issue arises – proactive data management is key to your success.
