5BCBS 239 – Legal Data in Risk Aggregation
In the banking context, the specific importance of data to ensure risk management and global financial stability has been recognised primarily by the Basel Committee on Banking Supervision through BCBS 239. This chapter first seeks to lay out the contents of, and reasoning behind, the BCBS 239 principles on risk data aggregation and reporting, before discussing how firms can successfully achieve compliance and the problems they may face in doing so, focusing on, as relevant, the legal data context.
What is the Basel Committee on Banking Supervision and BCBS 239?
The Basel Committee on Banking Supervision (BCBS) was founded in 1974 and was comprised of regulatory authorities from the major G‐10 countries (the G‐10 being made up of industrial countries which consult and cooperate on economic, monetary and financial matters), as a forum for Member States on banking supervisory matters. The original aim of the BCBS was the enhancement of financial stability by improving banking supervision worldwide. BCBS 239 is a set of principles published by the Basel Committee in January 2013 for effective risk data aggregation, seeking to strengthen the risk data aggregation capabilities of systemically important banks, as well as their internal risk reporting capabilities. The Financial Crisis showed the inadequacies of the IT and data architectures of these systemically important institutions in the financial system, ultimately leading to the ...