Risk Data and Reporting
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  • “Risk Data and Reporting”:
    time to strip away the technicalities and conceptions,and reassess your Basel III implementation

    By Xavier Dubois, Senior Risk & Finance Specialist, Wolters Kluwer Financial Services

    Published September 22, 2014

    To read more, download the full comment piece in PDF format »  

    High up on the regulatory mountain, sits the Basel Committee on Banking Supervision (BCBS) and its global directive Basel III, which all firms are working to implement through to 2019. Now is a good time to revisit one of the Basel Committee’s key fundamental papers “Principles for effective riskdata aggregation and risk reporting” - January 2013 . The principles outlined in this paper are integral to effective implementation of Basel III and thus should be constantly at the forefront of our minds and actions. This article provides a refreshed look at these principles, beyond technicalities and assumed conceptions.

    Let us first have a look at the wording of the title: “Effective Risk Data Aggregation”. Data aggregation is often perceived as putting data together and from a numerical perspective; performing summations or other averages. It is often considered as basic, at least conceptually, but this is a common misconception and must not be underestimated.

    "To enhance risk management and decision-making processes at banks” is the general objective of these principles and the first detailed objective is to“Enhance the infrastructure for reporting key information, particularly that used by the board and senior management to identify, monitor and manage risks”.

    The primary beneficiaries of these principles, but by no means the only, is the board and senior management, as they bear the ultimate responsibility of the bank and make the most important decisions. This immediately positions and states the importance of the principles that are detailed, and thus the attention that should be paid to them and to their implementation.

    To read more, download the full comment piece in PDF format »

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