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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

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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.