Insights

BCBS 239 Compliance

A catalyst for gaining competitive advantage

One of the fundamental lessons learned from the financial crisis was that information technology (IT) and data architectures within and across banks were inadequate to support the broad management of financial risks. In response, the 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 presents a set of principles aimed at strengthening banks’ governance frameworks, enterprise-wide risk data aggregation capabilities and internal risk reporting practices. In turn, effective implementation of BCBS 239 is expected to enhance risk management and decision-making processes at banks. 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. Banks are expected to be compliant with all principles, which are summarised in Deloitte paper.

For more information contact Sean Smith, Partner or Victor Luan, Senior Manager on the Risk and Regulatory Consulting Team

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