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FRM Part I · FRM Exam Part I · Principles for Effective Data Aggregation and Risk Reporting

A bank's credit risk report is delivered to senior management 25 business days after month-end, and the board's risk committee says the figures are too stale to guide limit decisions. Which BCBS 239 risk reporting practice is most directly violated?

Timeliness is violated. BCBS 239 requires risk reports to be produced quickly enough for management to act, with frequency matching how fast risks change. A 25-day delay makes the information stale for limit decisions, whereas accuracy, comprehensiveness and distribution concern other attributes.

  1. AComprehensiveness
  2. BAccuracy and integrity
  3. CTimelinessCorrect
  4. DDistribution

Explanation

Timeliness requires that reports be produced quickly enough for decisions to be made, with frequency reflecting the risk's nature and volatility. The issue here is delay, not missing risk areas (comprehensiveness) or errors (accuracy). Distribution concerns who receives reports and confidentiality.

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