Best Execution discusses the role of the CDO in their recent piece, The Chief Data Officer Comes of Age, exploring how the role has evolved and what it takes to lead a data-driven organization. In the article, Citiosft’s Steve Young says there is “a lot of noise and activity” around data management and discussions regarding CDOs, but none of it is consistent. “One of the challenges around data management in the investment management industry is that there is no common methodology across the industry,” he says. “We increasingly see variations in where CDOs sit within a firm and what their responsibilities are.”
In order to be effective, says Young, a CDO must “be on the top table” of a firm. If a CDO reports into an operations or technology board member it will be more difficult for him or her to operate in a way that will be effective. “One of the main characteristics of the CDO role is that it bridges technology and the business. In siloed organisations, there is no ‘natural fit’ for a CDO, which is one of the reasons the role is being created. It requires a new skill set and a new team to address the many issues that data management creates,” he adds.