Basel Committee issues “Principles for effective risk data aggregation and risk reporting (BCBS 239) – final document”

Today, 9th Jan 2013, the Basel Committee on Banking Supervision issued a press release announcing the final document “Principles for effective risk data aggregation and risk reporting (BCBS 239).

I wrote two posts on the consultation paper, when it was issued in June 2012.

1. Data aggregation and reporting principles (BCBS 239) – applied common sense

2. Risk data aggregation and risk reporting (BCBS 239) – Board and senior management responsibilities

I’m pleased to see that the final document retains the applied common sense approach set out in the June 2012 version. Working together with other independent data professionals, I provided feedback to the Basel Committee on the June consultation paper. Our feedback, together with that from banking organisations worldwide was also published today – See feedback and comments. The final document has taken on board the feedback from all of the contributors and provided additional clarification where requested. For example, Annex 1 has been expanded considerably to explain all of the “Terms used in the document”.

Banks need to start working on compliance plans immediately. To quote paragraph 87 of the document “National banking supervisors will start discussing implementation of the Principles with G-SIB’s senior management in early 2013. This will ensure that banks develop a strategy to meet the Principles by 2016.”

While compliance with the principles is mandatory for G-SIBS (Globally Systemically Important Banks), the document makes it clear that all banks should implement the principles. Paragraph 15 states “It is strongly suggested that national supervisors also apply these Principles to banks identified as D-SIBs (Domestic systemically important banks) by their national supervisors three years after their designation as D-SIBs.  

As I point out in Data aggregation and reporting principles (BCBS 239) – applied common sense, all organisations in all industries would benefit by applying these principles. Simply remove the word “Risk”, and one has “Principles for effective data aggregation and reporting”.

What do you think? Please post your views below. Join the debate.

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