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BCBS 239

Turn regulatory obligation into operational and strategic benefits
Designed to help you implement the principles for effective risk data aggregation

In January 2013, the Basel Committee on Banking Supervision issued a set of BCBS 239 principles for banks to comply with in terms of their Governance, IT infrastructure, Data aggregation capabilities, and Risk reporting practices.

Most enterprises started their BCBS 239 journey with the creation of a unified Risk & Finance data warehouse which consolidated and centralised data from different source systems to create a reliable single source of information (Data Hub). Here comes the first stumbling block which needs to be avoided. Building a Risk & Finance Data Hub takes years.

We have seen many projects in jeopardy because of a lack of concrete delivery. Therefore, opting for a piecemeal and iterative rather than enterprise-wide implementation is crucial.

How does Finalyse address your challenges?

Better risk management due to better reporting capabilities based on higher data quality

Roles and Responsibilities are in place & final reporting based on signed off data 

No more redundant data transfers and less workloads & data manipulation

More clarity, comprehension, and cohesion across the departments

Robust Data Governance for internal/external audits

Get all your questions answered

How does it work in practice?

Finalyse proposes a top-down approach (starting with the analysis of the reports) highlighting the dependencies between Risk, IT, and Data Offices (taking charge of all data management & data governance initiatives) during the project lifecycle through a list of clearly identified deliverables that should be produced for each iteration.

 

 

The first steps refer to the formation of a plan – process routes, descriptions, etc. Next comes the implementation of these plans within the company tools, processes, metrics, and roles/bodies.

Based on past experiences on similar assignments, we consider the tight involvement of business to be paramount to the success of the project.  We expect at least the following items to be delivered by the business representatives (Risk and/or Finance Department) and not outsourced to ensure a smooth and viable collaboration with the Data Office and the IT teams in charge of the development.

To tackle BCBS 239 principles in an adequate manner, we provide tailor-made support and pre-defined templates for all these deliverables.

Key Features

  1. A hands-on top-down approach highlighting the dependencies between Risk, IT, and Data Offices.
  2. A RACI matrix defining the Roles and Responsibilities (who is accountable for each data and report) and allowing intermediary and final sign-off of data/reports.
  3. A full process performed and documented through predefined templates – an assessment on the completeness and correctness of the data through the Data Dictionary, followed by the Data Delivery, and Data Optimisation steps.
  4. A clear view on the data through definition and robust documentation for data governance and internal/external audits.

What Finalyse experts say

20 May, 2020
Implementing BCBS239, What does it take?

This article discusses how Finalyse carries out implementation of BCBS 239 projects. It shows the stumbling blogs that typically hinder implementation of such projects, such as big-bang approach or lack of communication between stakeholders. To avoid these pitfalls, Finalyse proposes a piecemeal, iterative approach which is discussed in further detail in this article. The article also provides several tips for translating a BCBS 239 plan into current systems.

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14 Oct, 2019
Basel IV - data from a bank's perspective

This blog discusses the impact that the December 2017 Basel reforms will have on the way banking institutions are going to use their data when constructing their credit risk models. Whilst these changes are not going to impact every financial institution in exactly the same way and the bigger institutions that make use of IRB approach will be affected disproportionately harder, this article provides a description of all major Basel IV data elements that all banking institutions will have to account for and in what way. These elements include: External Ratings, Collaterals Sourcing, Credit Conversion Factor (CCF), SME Indicator, Revolver/Transactor Indicator and others. Coordinates to the specific regulatory pieces are provided if you are interested in exploring any particular topic in greater detail.

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