How does data quality impact risk assessment?

How does data quality impact risk assessment?

Data quality is crucial in risk assessment as it ensures accurate analysis and decision-making. Poor data can lead to incorrect risk evaluations.

What are the key factors that determine data quality?

Key factors include accuracy, completeness, consistency, timeliness, and relevance of the data used in assessments.

Can you give examples of poor data quality affecting risk assessments?

Sure! For instance, outdated financial records can lead to underestimating credit risk, while incomplete customer data may result in misjudging market risks.

How can organizations improve their data quality?

Organizations can improve data quality by implementing data governance policies, regular audits, and using data validation tools.