In January of 2013, the Basel Committee on Banking Supervision (BCBS) issued a set of 14 principles for Risk Data Aggregation and Reporting (RDAR) and risk reporting, known as BCBS 239. BCBS 239 seeks to improve the risk management and decision making process at banks by improving how each bank defines, gathers, and processes risk data and how it measures performance against risk tolerances.
The set of 14 RDA principles are intended to address what the BCBS sees as one of the most significant lessons learned from the financial crisis that began in 2007 – the inability of banks to quickly and accurately identify risk exposures and risk concentrations at the bank group level, across business lines and between legal entities.
My KPMG colleagues and I provide a summary overview of the looming deadline in the report 2016 Risk Data Aggregation Deadline Approaching. Over the next few months in a series of blogs and reports, we will provide in depth analysis of leading practices in RDAR, from the perspective of the regulators’ expectations and the financial services operating models.