DATA ASSURANCE TO COMPLY WITH BCBS 239

BCBS 239

Basel Committee on Banking Supervision (BCBS) issued Principles for Effective Risk Data Aggregation and Risk Reporting (BCBS 239) to enhance banks’ risk data aggregation capabilities and internal risk reporting practices. BCBS 239 was effective from 1st January 2016 for Global Systemically Important Banks (G-SIRS) while Other Systemically important Banks (0-SIRS) are expected to be compliant three years after the date they become designated. BCBS 239 Overview presents a set of principles almed at strengthening banks’ governance frameworks, enterprise-wide risk data aggregation capabilities, and internal risk reporting practkek The principles provide descriptive guidance on the Infrastructure and capacities that banks should have in place to Improve the management of data and risk reporting.

WHY TO COMPLY WITH THE BCBS239?

  • For data governance and to promote investment in frameworks and strategies. Also to show improvement in banks' stewardship of critical data, and to ensure governance around data reporting management is always established and adhered to.
  • To diagnose and examine banks' data and reporting architecture. capabilities, and governance weakness at the outset of the project.
  • To have a robust end-to-end data and reporting governance framework and 0 enhance automation around all finance and risk-related data and reporting management.
  • Upgrading the existing IT infrastructure to be more cost-efficient.
  • To establish a holistic 'data house.
  • BCBS 239 will create a common language that encourages unprecedented alignment between risk and finance, drive banks towards transforming their risk management practices responding better to economic distress.

BCBS 239 PRINCIPLES

Governance and Infrastructure
  • Robust governance structures should underpin risk data aggregation and report. The banks' board and senior management must understand deficiencies in internal Controls and aggregated data
  • Organizational boundaries must be overcome so risk data can be accurately aggregated across business lines, Jurisdictions, and legal entitles promptly.
  • Systems must support risk data aggregation and reporting, including -critically - during times of stress or crisis.
Risk Data Aggregation Capabilities
  • Banks must demonstrate the ability to generate accurate and reliable aggregated risk data, and largely through automated solutions to minimize errors.
  • Banks must demonstrate the ability to generate accurate and reliable aggregated risk data, and largely through automated solutions to minimize errors.
Risk Reporting Practices
  • Banks must ensure that reconciled, validated and accurate risk reports are presented to the appropriate stakeholders on time to support the decision-making process.
  • The reports must cover all material risk areas within the organization and be understandable for recipients.
  • All material gaps or weaknesses are well understood and factored into the conclusion making process.
Supervisory Review Tools and Cooperation
  • Supervisors will review and monitor banks’ compliance with the principles and use appropriate tools to ensure deficiencies are addressed in an effective and timely manner.
  • The supervisor should have the ability to restrict growth in a bank’s risk-taking activities should it have concerns about data deficiencies.

BCBS 239 COMPLIANCE PLAN PROCESS

Recommended action plan to assess CCPA compliance and build an implementation plan.

Group 13283

BUSINESS BENEFITS

Drive Structural
Cost Reductions

 Reduce losses through a simplified portfolio of data repositories and a faster time to market, as well as minimizing the costs associated with poor-quality data (such as reporting that requires constant remediation)

Enhance Capabilities
of Risk Management

Quantifications that may result in the reduction in capital requirements and a profound liquidity and funding profile

Improve the
Decision-Making Process

 Throughout the organization by enhancing the management of information across legal entities and at the group/consolidated level.

Eliminate the Probability
of Regulatory Fines

Due to unreliable and untimely submission of returns

Reduce the Probability
and Severity of Losses

Resulting from risk management weaknesses due to data inefficiency

Improve
Transparency

 and outcomes of regulatory scrutiny and inspections

Improve Management
Efficiency

 and the speed at which information is available

Improve the organization’s
quality of strategic planning

and the ability to manage the risk of new products and services

Enhance the
Infrastructure

 For reporting key information, particularly for Board and senior management

Improve
Risk

 Management from accurate quantification models

Faster
Onboarding
Enable to
Cross-sell, Up-sell

Leading to higher Profitability

Support Strategic and Holistic Decision-Making

On risk appetite, therefore, improve banks’ risk-return profile

BENEFITS

Drive structural cost reductions, reduce losses through a simplified portfolio of data repositories and a faster time to market, as well as minimizing the costs associated with poor-quality data (such as reporting that requires constant remediation)

Enhance capabilities of risk management quantifications that may result in the reduction in capital requirements and a profound liquidity and funding profile

Improve the decision-making process throughout the organization by enhancing the management of information across legal entities and at the group/consolidated level.

Eliminate the probability of regulatory fines due to unreliable and untimely submission of returns

Reduce the probability and severity of losses resulting from risk management weaknesses due to data inefficiency

Improve transparency and outcomes of regulatory scrutiny and inspections

Improve management efficiency and the speed at which information is available

Improve the organization’s quality of strategic planning and the ability to manage the risk of new products and services

Enhance the infrastructure for reporting key information, particularly for Board and senior management

Improve risk management from accurate quantification models

Faster onboarding

Enable to Cross-sell, Up-sell leading to higher Profitability

DATA INSIGHTS PLATFORM(DIP) SOLUTION FOR REGULATORY COMPLIANCE

bcbs

Data Insights Platform (DIP) is a Data Governance framework designed specifically for Regulatory compliance , with pre-configured content like Policies, Controls, data categories, Sub-Categories, Critical Data Elements, workflows, reports, dashboards, and more.

Data Insights Platform (DIP) offers a centralized location where you can document, govern and collaborate around privacy and security policies to ensure they are effectively managed across the enterprise. It also allow organizations to establish a data mapping system to record processing activities and perform data Quality assessments.

Data Insights Platform (DIP) provides a sustainable approach to regulatory policies by managing the compliance through risk evaluations and assessments then take remediation actions as issues arise. Manage approvals, identify risk controls and tailor workflows to match specific business needs. Monitor compliance progress through easy-to-understand dashboards and reports which shows the regulatory violations details. 

AMURTA’s Data Insights Platform is an enterprise-level solution that enhances productivity and perform better by turning raw data into actionable insights. This platform put people and process in place which improves automating the data governance and data management to deliver the trusted data to the business users who can quickly chart out the reality of data, its lineage, and usage across the policies, processes, projects, and regulation.

SPEAK TO OUR EXPERTS TODAY

If you have queries  we are ready to discuss how our Data Insights Platform can help you in improving your organization governance process.