The Basel Committee for Banking Supervision (BCBS) proposed risk data aggregation and reporting principles to strengthen risk management processes within banks, specially a bank’s risk IT Infrastructure, risk data aggregation, risk data quality, risk data strategy, timeliness, accuracy, completeness, metadata management, master data management and MIS reporting.

These principles are applied on wider range of Global Systemically Important Banks (G-SIBs) and Domestic Systemically Important Banks (D-SIBs).

Business Situation:

Along with BCBS-239, U.S. regulations such as DFA 165(e), Reg-W, DFA (608) require banks to strengthen risk data aggregation as well as their reporting framework, both in-terms of business capabilities and architectural fitments to cover four closely related topics.

  • Overarching governance and infrastructure

  • Risk data aggregation capabilities

  • Risk reporting practices

  • Supervisory review, tools

The Challenge:

  • Understand & Translate BCBS-239 principles into meaningful and measurable changes.

  • Demonstrate Data Lineage to prove where and how data is created and touched throughout its lifecycle.

  • Identify and define “data owners” and demonstrate process accountability.

  • Demonstrate consistency among Taxonomies and Data Glossaries.

  • To demonstrate early warning of any potential breaches of risk limits impacting the bank’s risk tolerance and appetite.

How we can help:

  • Aggregate risk data across multiple dimensions from disparate sources in near real time. The aggregated data can then be fed into the reporting applications for report preparation.

  • Traceability amongst data elements, models, data transformation and decisions across portfolios, products and business segments.

  • Real time concentration/materiality risk analysis for faster decision making

BCBS - RDA