FRM Part II · FRM Exam Part II · Risk Reporting
A bank's board receives a monthly risk report that is accurate and complete but arrives six weeks after month-end, by which time several exposures have changed materially. Which BCBS 239 risk data aggregation and reporting principle is most directly breached?
Timeliness is breached. BCBS 239 expects risk reports to reach decision-makers quickly enough to be useful, with frequency reflecting how volatile the risk is. A report that is accurate and complete but six weeks old no longer reflects current exposures, so it fails the timeliness requirement.
- AAccuracy and integrity
- BTimelinessCorrect
- CComprehensiveness
- DAdaptability
Explanation
The report is accurate and complete but stale, so the shortfall is in how quickly it is produced. BCBS 239 requires risk reports to be produced in a timely way so management can act, with the required frequency depending on the nature and volatility of the risk. Accuracy and comprehensiveness are stated as satisfied.
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