The role of big data in governance: a regulatory and legal perspective of analytics in global financial services

This paper discusses how global financial institutions are using big data analytics within their compliance operations. A lot of previous research has focused on the strategic implications of big data, but not much research has considered how such tools are entwined with regulatory breaches and investigations in financial services. Our work covers two in-depth qualitative case studies, each addressing a distinct type of analytics. The first case focuses on analytics which manage everyday compliance breaches and so are expected by managers. The second case focuses on analytics which facilitate investigation and litigation where serious unexpected breaches may have occurred. In doing so, the study focuses on the micro/data to understand how these tools are influencing operational risks and practices. The paper draws from two bodies of literature, the social studies of information systems and finance to guide our analysis and practitioner recommendations. The cases illustrate how technologies are implicated in multijurisdictional challenges and regulatory conflicts at each end of the operational risk spectrum. We find that compliance analytics are both shaping and reporting regulatory matters yet often firms may have difficulties in recruiting individuals with relevant but diverse skill sets. The cases also underscore the increasing need for financial organizations to adopt robust information governance policies and processes to ease future remediation efforts.

Historical reconstruction of the Atlantic Meridional Overturning Circulation from the ECMWF operational ocean reanalysis

A reconstruction of the Atlantic Meridional Overturning Circulation (MOC) for the period 1959–2006 has been derived from the ECMWF operational ocean reanalysis. The reconstruction shows a wide range of time-variability, including a downward trend. At 26N, both the MOC intensity and changes in its vertical structure are in good agreement with previous estimates based on trans-Atlantic surveys. At 50N, the MOC and strength of the subpolar gyre are correlated at interannual time scales, but show opposite secular trends. Heat transport variability is highly correlated with the MOC but shows a smaller trend due to the warming of the upper ocean, which partially compensates for the weakening of the circulation. Results from sensitivity experiments show that although the time-varying upper boundary forcing provides useful MOC information, the sequential assimilation of ocean data further improves the MOC estimation by increasing both the mean and the time variability.

The GlobMODEL demonstrator: assimilation of new satellite products in an operational meteorological center

As part of its Data User Element programme, the European Space Agency funded the GlobMODEL project which aimed at investigating the scientific, technical, and organizational issues associated with the use and exploitation of remotely-sensed observations, particularly from new sounders. A pilot study was performed as a "demonstrator" of the GlobMODEL idea, based on the use of new data, with a strong European heritage, not yet assimilated operationally. Two parallel assimilation experiments were performed, using either total column ozone or ozone profiles retrieved at the Royal Netherlands Meteorological Institute (KNMI) from the Ozone Monitoring Instrument (OMI). In both cases, the impact of assimilating OMI data in addition to the total ozone columns from the SCanning Imaging Absorption spectroMeter for Atmospheric CartograpHY (SCIAMACHY) on the European Centre for Medium Range Weather Forecasts (ECMWF) ozone analyses was assessed by means of independent measurements. We found that the impact of OMI total columns is mainly limited to the region between 20 and 80 hPa, and is particularly important at high latitudes in the Southern hemisphere where the stratospheric ozone transport and chemical depletion are generally difficult to model with accuracy. Furthermore, the assimilation experiments carried out in this work suggest that OMI DOAS (Differential Optical Absorption Spectroscopy) total ozone columns are on average larger than SCIAMACHY total columns by up to 3 DU, while OMI total columns derived from OMI ozone profiles are on average about 8 DU larger than SCIAMACHY total columns. At the same time, the demonstrator brought to light a number of issues related to the assimilation of atmospheric composition profiles, such as the shortcomings arising when the vertical resolution of the instrument is not properly accounted for in the assimilation. The GlobMODEL demonstrator accelerated scientific and operational utilization of new observations and its results - prompted ECMWF to start the operational assimilation of OMI total column ozone data.

Validation of improved TAMANN neural network for operational satellite-derived rainfall estimation in Africa

Real-time rainfall monitoring in Africa is of great practical importance for operational applications in hydrology and agriculture. Satellite data have been used in this context for many years because of the lack of surface observations. This paper describes an improved artificial neural network algorithm for operational applications. The algorithm combines numerical weather model information with the satellite data. Using this algorithm, daily rainfall estimates were derived for 4 yr of the Ethiopian and Zambian main rainy seasons and were compared with two other algorithms-a multiple linear regression making use of the same information as that of the neural network and a satellite-only method. All algorithms were validated against rain gauge data. Overall, the neural network performs best, but the extent to which it does so depends on the calibration/validation protocol. The advantages of the neural network are most evident when calibration data are numerous and close in space and time to the validation data. This result emphasizes the importance of a real-time calibration system.