The primary objective of the Principles for Effective Risk Data Aggregation and Reporting, issued by BCBS, has been to address the underlying challenges of risk data aggregation and provide guidance for development of the reporting framework. With the advent of these principles, entities need to assess their current reporting infrastructure used by the Board or senior management to identify, monitor and manage risks. The new information framework is expected to improvise speed of reporting, enhance the ease of management of information and improvise the overall decision making process throughout organizations.

The 14 principles prescribed by Basel encompass the four overarching principles namely: 

  1. Governance and Infrastructure
  2. Risk Data Aggregation capabilities
  3. Risk reporting practices
  4. Supervisory Review, Tools and Cooperation (Review focused)
In response to the principles, banks are expected to augment, or develop if necessary, central data warehouse and analytics capabilities, powered by a robust IT framework to consolidate, manage and process risk data. The guidelines will also see consolidation of data and reporting practices across various functions of the banks, including business, risk and finance.

With Aptivaa’s proven techno-functional expertise, we can collaborate with enterprises to develop risk data management capabilities to ensure compliance to the principles. We bring our expertise to address Data Quality, Lineage issues and assist enterprises in achieving near real time reporting. 

Our approach focuses on leveraging the existing framework and resources to develop the data aggregation and reporting framework, considering additional tools and software only where necessary.