The Importance of Root Cause Analysis
![anthony-malakian-waters anthony-malakian-waters](/sites/default/files/styles/landscape_750_463/public/import/IMG/216/142216/anthony-malakian-waters.jpg.webp?h=373a525f&itok=zNeqXFEa)
On Tuesday, I chaired the North American Trading Architecture Summit. If you attended, I hope you walked away with new ideas and new contacts. In case you missed it, I along with my colleagues Tim Murray and Jake Thomases have written several analytical pieces from the event.
One presentation in particular caught my attention. Howard Halberstein, vice president and lead solutions architect of Deutsche Bank's UNIX division, provided a thoroughly entertaining case study on root cause analysis, in which he described two "causes" that relate to an event. Proximate cause is directly linked to the undesired outcome. He likened this to a missile hitting a plane, with the missile being the cause of the plane falling out of the air. Root cause is more difficult to determine as it is usually more political than technical.
Reactions to problems tend to be knee-jerk instead of the result of looking into the root cause. "Someone trips over a cord and we put armed guards in front of the datacenter. A person accidentally pastes something incorrectly, we remove ‘paste' from every computer in the entire company so it never, ever happens again," Halberstein says.
Determining root cause is difficult. "It's really hard in an IT shop to find root cause," he says, because a seemingly endless string of people, events and processes have to be examined. Numerous interactions take place, involving lots of people and different units and vendors—not to mention the data points to weed through.
I will explore this issue in more depth soon, but the idea that became clear at the event is that root cause analysis can only be effective with good quality data in place. And creating standards for where data is stored is essential. This is about creating efficiency throughout the organization and not just blindly throwing money or resources at an issue in a reactionary way.
I would like to thank all the delegates and sponsors who made the North American Trading Architecture Summit possible. It really was a great day.
If you have any feedback on the event, or want to discuss root cause analysis further, drop me a line at +1 646-490-3973 or anthony.malakian@incisivemedia.com.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
How a Chinese AI firm shook the tech world
DeepSeek’s AI model is the very ethos of doing what you can with what you have.
To unlock $40T private markets, Hamilton Lane embraced automation
In search of greater transparency and higher quality data, asset managers are taking a tech-first approach to resource gathering in an area that has major data problems.
FactSet-LiquidityBook: The buy-side OMS space continues to shrink
Waters Wrap: Anthony spoke with buy-side firms and industry experts to get a feel for how the market is reacting to this latest tie-up.
S&P sees strong demand for GenAI tools as leadership changes hands
The data provider released several AI-enabled tools and augmentations to existing platforms in 2024 and plans to continue to capitalize on the technology in 2025.
To modernize loan markets, making data more accessible is key
Wilmington Trust is using AccessFintech’s Synergy platform to ditch faxes and emails in the increasingly popular asset class.
Lucrative market data deal with LSEG fuels Tradeweb’s record quarter
The fixed-income trading venue realized gains from its 2023 deal with the London Stock Exchange Group, amid soaring revenues from market data providers industry-wide.
Is overnight equities trading a fad or the future?
Competition is heating up in US equity markets as more venues look to provide trading from twilight to dawn. But overnight trading has skeptics, and there are technical considerations to address.
DTCC revamps data distribution, collection efforts with cloud, AI
The US clearinghouse is evaluating the possibilities that cloud and AI offer to streamline the processes by which it collects and makes data available to market participants.