Bracing for change and capturing the opportunity | KPMG | SG

BCBS 239: Bracing for change and capturing the opportunity

Bracing for change and capturing the opportunity

This paper aims to stress that BCBS 239 will have very real implications for banks as the regulation ushers in not just a technology but a business change.

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Bracing for change and capturing the opportunity

Regulators worldwide are requiring banks to put in more technological resources to enhance their ability to identify and manage bank-wide risks. The requirements come in the wake of the Global Financial Crisis, where banks were found to be lacking in their ability to understand quickly and accurately, their overall exposures. 

In a bid to prevent a repeat of the crisis, the Basel Committee on Banking Supervision (BCBS) came up with the document, “BCBS 239 – Principles for effective risk data aggregation and risk reporting (RDARR). Among other things, the principles seek to elevate banks’ data aggregation capabilities. 

Failure to comply with the principles could mean regulatory penalties, increase capital charges, heightened regulatory and reputational risks, as well as a loss of competitive advantage.

KPMG’s approach helps banks to trigger value in the compliance exercise through the use of a lifecycle framework. Banks will be given help to identify, design, implement and support in their RDARR services. The approach is designed to engage stakeholders to customize RDARR requirements to their business needs and continuously adapt to changes in the business environment.

This paper aims to stress that BCBS 239 will have very real implications for banks as the regulation ushers in not just a technology but a business change.

© 2017 KPMG Services Pte Ltd (Registration No. 200003956G), a Singapore incorporated company and a member firm of the KPMG network of independent member firms affiliated with KPMG International cooperative, KPMG International. All rights reserved.

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