AxiomSL: Making BCBS 239 Operational
Posted: 1 March 2016 | Source: AxiomSL
One of the key issues highlighted by the financial crisis of 2007-8 was the inability of market participants and regulators to quickly identify significant concentrations of risk. The Basel Committee on Banking Supervision (BCBS) responded in 2013 by publishing the 14 principles of BCBS 239. The first 11 principles set out the Basel Committee’s expectations in relation to the ability of global systemically important banks (G-SIBs) to aggregate and report risk data. The principles, which come into force globally in January 2016, cover a wide a range of topics including:
- Data architecture and IT infrastructure
- Data accuracy and integrity
- The completeness of data
- The timeliness of reporting
- The ability of banks to respond to ad-hoc reporting requests
- The frequency of reporting
- The distribution of reports
BCBS 239 has implications for several functions, including risk, finance and accounting, and for the data and IT infrastructure on which these functions rely. However, as banks continue their work on BCBS 239, many appear to have overlooked the important role that the regulatory calculation and reporting platform will have to play in their compliance with the principles.
This white paper demonstrates why a strategic regulatory platform should be the cornerstone of every bank’s response to BCBS 239. It also outlines the key functionality banks need from a regulatory platform in order to not only satisfy the regulators in January 2016, but also to integrate BCBS 239 compliance as a business-as-usual (BAU) process.