FRM Part I · FRM Exam Part I · Principles for Effective Data Aggregation and Risk Reporting
A bank's risk data aggregation process produces credit exposure figures for a group-wide report. Supervisors find that different business lines use different internal identifiers for the same counterparty, so exposures to one borrower cannot be summed reliably. Which BCBS 239 data aggregation principle is most directly weakened?
Accuracy and integrity is most directly weakened, because inconsistent counterparty identifiers stop exposures to one borrower from being reliably summed and reconciled. The problem is data reliability, not speed, hardware capacity or missing business lines, so that principle is the best fit.
- AData architecture and IT infrastructure only, because identifiers concern hardware capacity
- BCompleteness, because only missing business lines matter
- CTimeliness, because identifier problems always cause delays
- DAccuracy and integrity, because inconsistent identifiers prevent reliable aggregation and a single authoritative sourceCorrect
Explanation
Inconsistent counterparty identifiers undermine reliable, reconciled data and the ability to aggregate to a consistent source, which is an accuracy and integrity issue (with links to data taxonomy). Completeness concerns capturing all material risk exposures, not identifier consistency, and the problem is not primarily about speed or hardware.
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