This publication looks at the Basel 239 Principles and the underlying challenges of risk data aggregation. However, this issue has to be based on a much broader perspective than simply that of risk data. BCBS 239 may be the prime driver at the moment. But the data challenge demands a much broader strategic response.
More and more data is being collected on all aspects of banking operations. Yet collectively, the totality of ‘data issues’ are still not properly aggregated nor, more importantly, understood by many in management.
Despite the substantial investment made to date around “data” and the additional investments needed to meet heightened global standards, many firms are failing to develop a coherent understanding of the strategic implications; and are failing to understand the significance of aligning a firms’ data strategy with the overall business strategy.
Firms needs to ask themselves whether they have a clear Data Architecture to support the principles of Risk Data Aggregation and whether they are able to create future data capabilities that will enable them to comply with the BCBS principles by the required deadline of 1 Jan 2016.