The Basel Committee on Banking Supervision (BCBS) 239: Principles for Effective Risk Data Aggregation and Risk Reporting – also known as the 14 principles – were developed to address the fact that many banks lack “the ability to aggregate risk exposures and identify concentrations quickly and accurately at the bank group level, across business lines, and between legal entities.”1 The framework, published in January 2013, is intended to strengthen banks’ risk data aggregation and reporting practices, as well as better align legal entity and group information. In addition, BCBS 239 is designed to drive more timely information and better strategic planning and reduce the impact of losses.
The 14 principles go into effect for 31 global systemically important banks (G-SIBS) in January 2016 and self-assessments were due in 2013 so organizations could identify gaps in their data management, risk, and reporting frameworks. This year, G-SIBS are focused squarely on defining strategy and addressing gaps between the self-assessment and risk aggregation framework.
As banks begin to prepare for compliance, two critical requirements have emerged:
» The need for a centralized and clearly defined strategy and structure for transforming information into a strategic asset that is leveraged comprehensively and consistently across an enterprise; and
» Unobstructed visibility across the complex network of data stores and siloed systems that define today’s large financial enterprises
Oracle Financial Services Analytics Applications (OFSAA) unified platform creates a foundation for both of these requirements – and successful BCBS 239 compliance – by providing a common data infrastructure that builds a single source of truth, enables effective data usage, and supports comprehensive and consolidated reporting.