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

A G-SIB's board is reviewing its BCBS 239 compliance. Which action is most consistent with the expectation on data architecture and IT infrastructure (Principle 2)?

Principle 2 requires data architecture and IT infrastructure that support risk data aggregation and reporting in both normal times and stress or crisis. Relying on manual workarounds during crises or on inconsistent taxonomies across business lines would not meet this expectation.

  1. ADesigning data architecture and IT infrastructure that fully supports risk data aggregation capabilities and reporting practices not only in normal times but also during stress or crisisCorrect
  2. BRelying on manual workarounds in crisis periods, since automated systems are required only in normal conditions
  3. CMaintaining separate, unreconciled data taxonomies for each business line to preserve local flexibility
  4. DPostponing infrastructure investment for any business line that is expected to be divested, regardless of its risk materiality

Explanation

Principle 2 requires data architecture and IT infrastructure to support aggregation and reporting both in normal times and in stress or crisis, while meeting the other principles. Manual workarounds in crisis and inconsistent taxonomies conflict with this. Exempting a material business line is also not permitted.

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