October 3rd Briefing, Transformation
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The document discusses the role of information technology (IT) at the Securities and Exchange Commission (SEC). It outlines the SEC's three-part IT strategy of improving program effectiveness, strengthening agencywide infrastructure and support, and enhancing IT management processes. Specific initiatives discussed include expanding electronic disclosure and developing interactive data tools to make financial filings more accessible. The document also examines IT systems developed for SEC enforcement and examination functions.
October 3rd Briefing, Transformation
- 1. Information technology at the SEC Corey Booth Chief Information Officer “ Transformation and Innovation” National Press Club October 3, 2007
- 2. Today’s discussion Overview – the Securities and Exchange Commission and the role of IT Snapshots of specific initiatives “ Interactive data” Enforcement and examination systems Ongoing challenges – what EA is teaching us
- 3. SEC strategic objectives “ The mission of the Securities and Exchange Commission is to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation.”
- 4. IT: The key driver of agency productivity Plus : Big rise in complexity Globalization Derivatives Private equity/hedge funds “ Democratization” US equity market value 1993 2005 $6.2 trn $18.2 trn 9.3%/yr 6.6% after inflation BUT: SEC staff/resources really can’t be expected to grow faster than GDP over the long term IT is our single best lever for keeping up with our expanding mission
- 5. Our three-part strategy Program effectiveness Agencywide infrastructure and support IT management processes Electronic disclosure Workflow and content management Electronic discovery Analytical tools Staff productivity, flexibility, and support Technical “backbone” Back office systems Information security and privacy IT governance IT people management
- 6. Specific initiatives – Program Effectiveness Electronic disclosure Workflow and content management Electronic discovery Analytical tools Interactive data initiatives and tools EDGAR system modernization Improvements to sec.gov Enforcement portfolio management Disgorgements and penalties Examination management “ Quick and dirty applications” Document imaging/ e-discovery Forensics lab Qualitative risk assessment Examination analytics
- 7. Specific initiatives – Infrastructure/Support Staff productivity, flexibility, and support Technical “backbone” Back office systems ITIL service management Remote access enhancements Desktop/laptop refreshment and management AV/scanning/faxing solutions VOIP rollout Storage/records management strategy ITIL service management Infrastructure services “re-outsourcing” Data center footprint planning Budgeting and procurement systems implementation Financial system upgrade
- 8. Recent progress – IT management Information security and privacy IT governance IT people management Awareness training Patching and configuration policies Access control Monitoring tools and processes Certification/ accreditation Privacy policy review Capital planning process redesign Improved change control process Enterprise architecture development “ Human capital review” 360 º feedback Managed professional development
- 9. Today’s discussion Overview – the Securities and Exchange Commission and the role of IT Snapshots of specific initiatives “ Interactive data” Enforcement and examination systems Ongoing challenges – what EA is teaching us
- 10. Internet-based disclosure at the SEC EDGAR – the heart of company disclosure (Electronic Document Gathering, Analysis, and Retrieval) First electronic filing in 1986 First electronic dissemination in 1992 Web-based public access to filings in 1994 Real-time public access in 2003 Insider ownership and transaction filings incorporated in 2003 Full-text search in 2006 Today, a critical tool for US investors 700,000 filings annually 528 million online EDGAR searches at www.sec.gov Secondary dissemination via third parties
- 11. Interactive data – the next big thing Overall goal: Transition filings from “paper-like” formats (such as HTML) to computer-readable format (such as XBRL) Primary beneficiaries: Investors, analysts, and other members of the public Direct consumption Indirect use through intermediaries Secondary beneficiaries: Corporate and mutual fund filers Tertiary beneficiaries: SEC reviewers
- 12. From this…
- 13. To this
- 14. From this…
- 15. To this
- 16. Many interactive data possibilities Financial reports (annual, quarterly) Mutual fund prospectus information Executive compensation Mutual fund portfolio holdings Consolidation/simplification of form libraries “ Investor centric” improvements “ SEC centric” improvements Compliance reports from regulated entities (mutual funds, broker-dealers, investment advisers, etc.) Data interchange with regulatory partners (SROs, PCAOB, exchanges, etc.)
- 17. Portfolio management: Enforcement Referral and inquiry Investigation Litigation Financial management/ collections Distributions Document management/workflow Management reporting Phase 1 – Post-judgment management (2006-07) Phase 2 – attorney case portfolio management (2007-08)
- 18. Portfolio management: Examination Risk assessment and exam targeting Research/ preliminary data gathering Fieldwork and onsite data gathering Exam level assessment Reporting Document management/workflow Management reporting “ RADIUS” (2008+) RADAR (2007) OASIS (2008) “ eSTARS” (2008+)
- 19. Today’s discussion Overview – the Securities and Exchange Commission and the role of IT Snapshots of specific initiatives “ Interactive data” Enforcement and examination systems Ongoing challenges – what EA is teaching us
- 20. The SEC’s enterprise architecture Technical reference model Data reference model Applications/services reference model Business reference model
- 21. Some challenges along the way EA offers excellent frameworks for thinking about business technology If “done right”, can truly draw linkages all the way from business strategy through the technical layers BUT: Can waste time looking for business-level commonalities where they don’t necessarily exist Can focus too much on the business issues (!) Sometimes misses the trees for the forest
- 22. What is the agency’s operating model? Level of information integration Business process standardization General Electric McDonald’s Citigroup Wal-Mart
- 23. What is the agency’s operating model? Level of information integration Business process standardization “ Current state EA” “ Future state EA” (Actual future state)
- 24. Lessons learned Business architecture problems very important, but must be chosen carefully Technical reference model Data reference model Applications/services reference model Business reference model
- 25. Lessons learned Business architecture problems very important, but must be chosen carefully It’s the data, stupid Technical reference model Data reference model Applications/services reference model Business reference model
- 26. Lessons learned Business architecture problems very important, but must be chosen carefully It’s the data, stupid Large ROI in managing technical architecture Technical reference model Data reference model Applications/services reference model Business reference model
- 27. Lessons learned Business architecture problems very important, but must be chosen carefully It’s the data, stupid Large ROI in managing technical architecture Focus on identifying key problems and solving them Technical reference model Data reference model Applications/services reference model Business reference model
Editor's Notes
- #2: DISCLAIMER: This speech expresses my views only, and does not necessarily reflect those of the Commission, the Commissioners, or other members of the staff.