What is BCBS 239?
- In 2013, the Basel Committee released BCBS 239, outlining 11 principles relating to Risk Data and Aggregation that Global Systemically Important Banks (G-SIB) banks must adhere to. These outline expectations for the accuracy, timeliness and comprehensiveness of Risk Data and Reports.
- Other national regulators, have identified Domestic Systemically Important Bank (as D-SIBs) that must demonstrate compliance with these principles by various dates from 2016.
Why BCBS 239?
- One of the most significant lessons learned from the global financial crisis that began in 2007 was that banks’ information technology (IT) and data architectures were inadequate to support the broad management of financial risks.
- Many banks lacked the ability to aggregate risk exposures and concentrations quickly and accurately at the bank group level, across business lines and between legal entities. Some banks were unable to manage their risks properly because of weak risk data aggregation capabilities and risk reporting practices. This had severe consequences to the banks themselves and the stability of the financial system as a whole.
Why is this a challenge?
- The breadth and scope of these principles significantly raise the bar relating to regulatory expectations on the robustness, repeatability and level of automation of Risk data and reporting capabilities.
What are the 11 areas covered by BCBS239 principles ?
|Data Architecture & IT Infrastructure|
|Data||Accuracy and Integrity|