The Importance of Root Cause Analysis

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: https://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
Exchange M&A, US moratorium on AI regs dashed, Citi’s “fat-finger”-killer, and more
The Waters Cooler: Euronext-Athex, SIX-Aquis, Blue Ocean-Eventus, EDM Association, and more in this week’s news roundup.
EDM Council expands reach with Object Management Group merger
The rebranded EDM Council now includes members from industries outside financial services.
As datacenter cooling issues rise, FPGAs could help
IMD Wrap: As temperatures are spiking, so too is demand for capacity related to AI applications. Max says FPGAs could help to ease the burden being forced on datacenters.
Bloomberg introduces geopolitical country-of-risk scores to terminal
Through a new partnership with Seerist, terminal users can now access risk data on seven million companies and 245 countries.
A network of Cusip workarounds keeps the retirement industry humming
Restrictive data licenses—the subject of an ongoing antitrust case against Cusip Global Services—are felt keenly in the retirement space, where an amalgam of identifiers meant to ensure licensing compliance create headaches for investment advisers and investors.
LLMs are making alternative datasets ‘fuzzy’
Waters Wrap: While large language models and generative/agentic AI offer an endless amount of opportunity, they are also exposing unforeseen risks and challenges.
Cloud offers promise for execs struggling with legacy tech
Tech execs from the buy side and vendor world are still grappling with how to handle legacy technology and where the cloud should step in.
Bloomberg expands user access to new AI document search tool
An evolution of previous AI-enabled features, the new capability allows users to search terminal content as well as their firm’s proprietary content by asking natural language questions.