BCBS 239 verlangt es, der Fachbereich braucht es, die IT-Abteilung will es, und kaum eine Bank hat es: ein leistungsfähiges Tool, das die Anforderungen an die explorative Datenanalyse genauso erfüllt wie die Vorgaben für das Risiko-Reporting. Beides zu schaffen, ist in der Tat ein Spagat. Auf der einen Seite stehen
Die Erfahrung aus Lehman Brothers oder dem Zahlungsausfall bei griechischen Staatsanleihen hat gezeigt, dass die bisherigen bankinternen Strukturen zur Steuerung der Institute nicht mehr der Vielzahl an Marktänderungen gerecht werden. Im Januar 2013 veröffentlichte das Basel Committee on Banking Supervision die „Grundsätze für die effektive Aggregation von Risikodaten und die Risikoberichterstattung“
This is the first out of a series of two blog articles in which I will attempt to discuss the importance of the execution of the principles of the BCBS 239 in the Banks. I feel that a Bank’s risk management department is like a radar on a ship. It
Als ich gestern Abend nach Hause kam, war meine Frau ein wenig gereizt. Ausnahmsweise war ich nicht Schuld, abbekommen habe ich ihre schlechte Laune trotzdem. Grund war, dass sie zum wiederholten Male das Kinderzimmer unseres vierjährigen Sohnes aufräumen musste. Gut, ich gebe zu, ein wenig wild sah es schon aus.
Principle 13: Remedial actions and supervisory measures - Supervisors should have and use the appropriate tools and resources to require effective and timely remedial action by a bank to address deficiencies in its risk data aggregation capabilities and risk reporting practices. Supervisors should have the ability to use a range
Principle 11: Risk management reports should be distributed to the relevant parties while ensuring confidentiality is maintained. Early in 2013, the Basel Committee on Banking Supervision (BCBS) issued guidelines for banks regarding risk data aggregation and reporting. Known collectively as BCBC 239, these principles were designed to ensure that banks
Principle 10: Frequency – The board and senior management (or other recipients as appropriate) should set the frequency of risk management report production and distribution. BCBS 239 “Effective Risk Data Aggregation & Risk Reporting”, released in January of 2013, specifically requires that the bank’s board and senior management should be
Principle 9: Risk management reports should communicate information in a clear and concise manner. Reports should be easy to understand yet comprehensive enough to facilitate informed decision-making. Reports should include meaningful information tailored to the needs of the recipients. While the data management and data aggregation principles have been heavily
Principle 8: Comprehensiveness - Risk management reports should cover all material risk areas within the organization. The depth and scope of these reports should be consistent with the size and complexity of the bank’s operations and risk profile, as well as the requirements of the recipients. One of the four
Principle 7: Accuracy - Risk management reports should accurately and precisely convey aggregated risk data and reflect risk in an exact manner. Reports should be reconciled and validated. Successful demonstration of Principle 7 requires senior management to rely upon the information presented in risk reporting. Since forward-looking strategic decisions are
Principle 5: Timeliness – A bank should be able to generate aggregate and up-to-date risk data in a timely manner while also meeting the principles relating to accuracy and integrity, completeness and adaptability. A timely and accurate view of risk exposure, aggregated across credit counterparties and financial products could have
Principle 4: Completeness – A bank should be able to capture and aggregate all material risk data across the banking group. Data should be available by business line, legal entity, asset type, industry, region and other groupings, as relevant for the risk in question, that permit identifying and reporting risk
Principle 3: Accuracy and Integrity – A bank should be able to generate accurate and reliable risk data to meet normal and stress/crisis reporting accuracy requirements. Data should be aggregated on a largely automated basis so as to minimize the probability of errors. It seems logical that banks would want
Principle 2: Data architecture and IT infrastructure – A bank should design, build and maintain data architecture and IT infrastructure which fully supports its risk data aggregation capabilities and risk reporting practices not only in normal times but also during times of stress or crisis, while still meeting the other
Principle 1: Governance – A bank’s risk data aggregation capabilities and risk reporting practices should be subject to strong governance arrangements consistent with other principles and guidance established by the Basel Committee. My colleagues and I have written a series of posts on the principles of BCBS 239. In this
Interestingly, the Basel Committee’s Principles for Effective Risk Data Aggregation and Risk Reporting (otherwise known as BCBS 239) begins with a quote from T.S. Elliot’s The Rock: Where is the wisdom we have lost in knowledge? Where is the knowledge we have lost in information? In this age of big
