FRM Part II · FRM Exam Part II · Risk Reporting

A bank's data governance review of its risk reporting finds the following: the Chief Data Officer owns a central data warehouse, but business units alter source data before it is loaded, with no documented data lineage, and the risk function relies on the units' own validation. The board wants to align with the principle that governance over risk data should be the same regardless of whether data is produced internally or by third parties and that data owners be accountable. Which combination of remedies is most consistent with that objective?

The best combination is accountable business-unit data owners for quality at source, documented end-to-end lineage, and independent validation of risk data. This closes the gaps of untraceable alterations and self-validation, whereas centralizing alteration, relying on attestations, or adding storage capacity fails to establish accountability and verifiable controls.

1. AAssign business-unit data owners accountable for quality at source, document end-to-end lineage, and subject the risk data to independent validationCorrect
2. BMove all data alteration to the central warehouse team and drop business-unit ownership
3. CRely on the business units' validation but add a quarterly attestation letter from each head
4. DIncrease the warehouse's storage capacity and automate nightly loading