FRM Part II · FRM Exam Part II · Risk Reporting
A bank can produce its standard monthly risk report but cannot quickly aggregate exposures by a new dimension, such as by sector and country, when the regulator requests it during an emerging event. Which risk data aggregation capability is mainly deficient?
Adaptability is the deficient capability. BCBS 239 expects banks to flexibly aggregate data by different dimensions to meet ad hoc, on-demand requests, including during stress or supervisory inquiries. The bank's routine report works, so accuracy and completeness are not the main problem.
- AAdaptabilityCorrect
- BAccuracy
- CCompleteness
- DIntegrity of the reporting calendar
Explanation
Adaptability is the capability to generate aggregate data to meet a broad range of on-demand, ad hoc requests, including those during stress and changes in supervisory needs. The standard report works, so accuracy and completeness are not the evident issue, and reporting calendar integrity is not a BCBS 239 capability.
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