Progress in adopting the Principles for effective risk data aggregation and risk reporting.
The Basel Committee on Banking Supervision today published its latest progress report on banks' implementation of the Principles for effective risk data aggregation and reporting. Issued in January 2013, the Principles aim to strengthen banks' risk data aggregation and risk reporting with a view to improving their risk management, decision-making processes and resolvability.
The progress report is based on the results of a self-assessment survey of authorities with supervisory responsibility for global systemically important banks (G-SIBs). The report reviews G-SIBs' progress in implementing the Principles as of end-2018.
Covering 34 G-SIBs designated during 2011-19 and completed before the onset of the Covid-19 pandemic, the assessment surveyed recent developments at banks and gathered qualitative information regarding the implementation of the Principles.
None of the banks are fully compliant with the Principles in terms of building up the necessary data architecture and, for many, IT infrastructure remains difficult. But banks' efforts to implement the Principles have resulted in tangible progress in several key areas, including governance, risk data aggregation capabilities and reporting practices.
To promote full adoption of the Principles, the Committee has made the following recommendations:
- Banks should continue to closely monitor their implementation of the Principles, adapting them as necessary to take into account any changes in the financial sector. Banks that have struggled to implement the Principles should address weaknesses promptly, which may include committing the resources needed to complete data architecture and IT infrastructure improvement projects.
- Supervisors should continue to monitor the progress made by banks in implementing the Principles. Further, supervisors should take appropriate measures to address delays and ineffective implementation
The Committee will continue to monitor G-SIBs' progress in adopting the Principles.
- Publication Date: April 2020
- Publication Type: Implementation Reports
- Publication Status: Current
- Publication Category: Governance
- Number of Pages: 27
- Keywords: Governance, Operational Risk
For definitive information on regulatory matters always consult primary sources, especially where it concerns legally binding rules and regulations.
The above regulatory document abstract is quoted verbatim in this Open Risk Manual entry and provided free of charge for the convenience of all internet users. There is no explicit or implicit endorsement of this web service by the Bank of International Settlements. The copyright of the included material rests with the original authors (Links to the original texts are duly provided).