ISO 5116-2:2021

INTERNATIONAL ISO
STANDARD 5116-2
First edition
2021-07
Improving transparency in
financial and business reporting —
Harmonization topics —
Part 2:
Guidelines for data point modelling
Reference number
©
ISO 2021
© ISO 2021
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ii © ISO 2021 – All rights reserved

Contents Page
Foreword .iv
Introduction .v
1 Scope . 1
2 Normative references . 1
3 Terms and definitions . 1
4 What is a data model . 3
4.1 General . 3
4.2 The term “model” . 3
4.3 Data-oriented process of modelling . 3
4.4 The conceptual data model as a first step aiming for a database system . 4
4.5 Description of data modelling approaches for supervisory purposes . 4
4.5.1 General. 4
4.5.2 Using the “form centric” modelling approach . 5
4.5.3 Using the “data centric” modelling approach . 6
4.6 Description of dimensional modelling . 8
4.7 The concept of normalization . 9
5 Why use a multidimensional data model .13
5.1 General .13
5.2 Multidimensional data model .13
5.3 Operations that can be carried out on a multidimensional data model .14
6 Why data modelling is essential for collecting supervisory information .16
6.1 General .16
6.2 Objective of Data Point modelling .16
6.3 Main features .18
6.3.1 Increase of knowledge and understanding .18
6.3.2 Improvement of integration of changes.18
6.3.3 Reduction of risk of duplicate information .19
6.3.4 Higher harmonization .22
6.4 Classification of Data Point modelling in the data modelling concept .23
6.5 Area of application .24
6.6 What are the technical constraints .25
7 How do you proceed in creating a Data Point Model .26
7.1 General .26
7.2 Define dictionary elements .27
7.3 Specify hierarchies .28
7.4 Define Data Points .29
7.5 Define normalized tables and ensure quality of Data Point Model .29
7.6 Distribute Data Point Model .31
8 What the future holds for us .31
Bibliography .34
Foreword
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This document was prepared by the European Committee for Standardization (CEN) (as CWA
XBRL 002) and was adopted with the following modifications by Technical Committee ISO/TC 68,
Financial services, Subcommittee SC 9, Information exchange for financial services.
— minor editorial change to Clause 1;
— Clause 2, Normative references, added;
— minor editorial changes.
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iv © ISO 2021 – All rights reserved

Introduction
0.1  General
The purpose of this document is to support supervisory experts in the creation of a Data Point Model
(DPM). According to the definition of the European Banking Authority (EBA), a DPM “is a structured
formal representation of the data [.], identifying all the business concepts and its relations, as well as
1)
validation rules, oriented to all kinds of implementers.”
The underlying rules for the creation of such methods were initially introduced by the Eurofiling
Initiative and developed further by the European Insurance and Occupational Pensions Authority
(EIOPA). The main objective of data point modelling, the process of creating a DPM, is as follows: “[it]
should help to produce a better understanding of the legal background to the prudential reporting data
2)
and make data analysis much easier for both the institutions and regulators” .
Further goals are to prevent redundancies, lower maintenance efforts and, in general, to facilitate
working with national extensions on the European agreed-upon data set to facilitate the descriptions
of requirements that are sharable across national legislations. It is a requirement to have all the
information collected by the national supervisory agencies, particularly in Europe, transformed into the
same data structure with the same quality in order to be able to carry out standardized analysis of the
data across Europe. The current implementations are not able to meet these European requirements for
3)
supervision “to achieve higher quality and better comparability of data” . The main reasons for this are
the differences between the data definitions and the data formats of the various national supervisory
agencies, making comparison of reported data virtually impossible.
0.2  Objective
The aim to harmonize the European supervisory reporting is to be able to carry out more comprehensive
analysis and an increase of comparability of data. Since the supervisory agencies are already acquainted
with the representation of regulations specified in laws, this document is going to introduce the reader
to the concept of Data Point modelling methodology, as well as to its main terms and definitions that will
enable you to create Data Point Models that contain “all the relevant technical specifications necessary
for developing an IT reporting format” on your own.
0.3  Target audience
In general, as a banking supervisor you are responsible for communicating with Information
Technology (IT) experts in order to support the transfer of the essence of regulatory reporting to IT
systems. In 2009, the Eurofiling Initiative published the concept of Data Point modelling. Structures
of data represented in supervisory tables, as well as underlying laws and guidelines, were defined in
order to enable the interpretation of the reporting information by IT applications. IT specialists are
responsible for the development of software. However, most of the time they do not have the special
business knowledge needed to gather reporting requirements from various sources, such as legal texts
like Solvency Regulations and National Banking Acts, in order to build a flawless system. Therefore, the
task of creating a DPM is assigned to you.
This document introduces the basic principles deemed necessary in the modelling process. On the basis
of the explanations given in this document, you will be able to provide prerequisites for deriving data
formats on the basis of a DPM, as well as setting up a powerful data warehouse. This implies that the
model is published in a format that is understood by both parties involved in transforming legislation
into a model: business experts and IT specialists. The topics regarding supervisory reporting are kept
short and limited to the content relevant for this document.
...