Describe the use of technology in the financial-information management function

Introduction Have you ever looked at an older house and noted how it’s had extensions added that don’t fit the original house? Whether it’s the pattern of the windows, the exterior surface or the shape of the extension that does not match you can tell it’s just not right and makes the whole structure look bad. Inside the house, the switch and outlet layout in the new rooms are different and the plumbing does not work as well as it did before. The air conditioning doesn’t get the house as cool and even the foundation of the house is cracking because the new and old sections are settling differently.

The use of technology in the financial- information management function One way financial services firms can improve their operational efficiency is to revamp their data management infrastructure. Creating a central repository for data that is used by multiple applications can ensure data consistency and quality across the enterprise, ease integration bottlenecks, and lower the number of failed trades

The use of technology in the financial- information management function However, different applications have different database usage patterns. To satisfy them all, any central data repository must: Support a large number of transactions with high performance Provide fast response to queries, using up-to-date information Provide reliable, scalable persistence for data Be easily accessible by several applications

Master data management Master data management (MDM) is a comprehensive method of enabling an enterprise to link all of its critical data to one file, called a master file, that provides a common point of reference. When properly done, MDM streamlines data sharing among personnel and departments. In addition, MDM can facilitate computing in multiple system architectures, platforms and applications.

Principle of least authority The principle of least privilege (POLP) is the practice of limiting access to the minimal level that will allow normal functioning. Applied to employees, the principle of least privilege translates to giving people the lowest level of user rights that they can have and still do their jobs

Single platform database With software it’s easier to disguise the exterior differences by adding a new user interface to all applications to make them look like one. However it’s infinitely harder to match up the structural elements of the applications and make them work like one especially if the platforms vary. The truth is no matter how good a development team is and how much time and money you spend on it, no two applications can ever be joined together in a way that allows them to operate as well as a single code, single platform application that was developed by one software firm. It would be like Rembrandt trying to finish a painting half completed by Picasso – no matter how great the artist, the result won’t be as good

Central data repository a central data repository would interface with many systems, including applications that handle risk management, performance measurement, accounting and trading, as well as reference data and corporate action services. In addition, the central repository should provide a fast response to queries from analysts, data integrity users and compliance users. To control costs and maintain smooth operations, many firms will want to take a gradual, modular approach to changing their data management infrastructure

Technological safeguards that are used to ensure the security of financial information Firewalls - A firewall is a system designed to prevent unauthorized access to or from a private network. Firewalls can be implemented in both hardware and software, or a combination of both. Firewalls are frequently used to prevent unauthorized Internet users from accessing private networks connected to the Internet, especially intranets intrusion detection systems - is a device or software applicationthat monitors network or system activities for malicious activities or policy violations and produces reports to a management station Encryption- Encryption is a way to enhance the security of a message or file by scrambling the contents so that it can be read only by someone who has the right encryption key to unscramble it. For example, if you purchase something from a website, the information for the transaction (such as your address, phone number, and credit card number) is usually encrypted to help keep it safe. Use encryption when you want a strong level of protection for your information

Technology used to archive financial records Microfilm - a length of film containing microphotographs of a newspaper, catalog, or other document. Digital images - Any image from a scanner, or from a digital camera, or in a computer, is a digital image. Computer images have been "digitized", a process which converts the real world color picture to instead be numeric computer data consisting of rows and columns of millions of color samples measured from the original image Electronic text -

Your employer is interested in updating and acquiring more effective financial-information management technology. Each team needs to develop and give a oral presentation and slide show that details the specific pieces/types of financial-information management technology that the team recommends for its company.