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Volume 32, Issue 2

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Thursday, 11 July 2019 15:04

In an Age of Increasing M&A Activity, Data Maintenance is Key to Ensuring Compliance

With M&A activity on the rise, a commitment to a strong data management program can help businesses to avoid expensive — and often dangerous — compliance and risk aggregation missteps. Kelvin Dickenson of Opus explains.

In 2018, there were 375 M&A deals valued at over $1 billion in the United States alone. Even in years with the least M&A activity, M&A transactions happen with enough frequency to effect substantial changes that impact numerous credit unions, banks, exchanges, broker-dealers and investment or commodities firms, not to mention many nonfinancial institutions.

Target companies end up with new parent companies, creating new hierarchical structures that can affect thousands of entities. Addresses and other pertinent details change, and headquarters may often be domiciled in altogether different states post-merger.

These and many other vitally important details can quickly shift, leaving once-trusted golden copies of data full of inaccuracies that proliferate incorrect information throughout an institution’s records, resulting in a domino effect of out-of-date data that travels from one information silo to the others.