Risk, data and the supervisor
Resilience and transparency are driving a regulatory focus on data within G-SIBs, but the clock is ticking for all banks
This paper provides a Deloitte perspective on the recent Basel Committee on Banking Supervision (BCBS) consultative document ‘Principles for Effective Risk Data Aggregation and Risk Reporting’. We present a point of view on the regulatory drivers for change within the industry, the implications for banks and discuss the actions that should be undertaken over the coming months.
While the individual BCBS principles cover specific aspects of risk data management and reporting, it is clear the overall intent is to set a benchmark for what is acceptable in the way financial institutions manage the data and processes needed to understand, control and report risk. The impacts will not be confined to the risk functions, rather there are significant implications for a bank’s risk operating model and, more broadly, how data is managed front-to-back across the bank.
Global Systemically Important Banks (G-SIBs) need to act now to be ready for self-assessment in early 2013; however, all banks should recognise this paper as a sign of things to come and start to assess the current maturity of their risk operating model and data management function and develop a plan to move up the curve.