FRM Part II · FRM Exam Part II · Risk Reporting
A global bank's board reviews a monthly risk report. The Chief Risk Officer notes that the report ties exposures to the general ledger and is reconciled to accounting data, and that known data gaps are disclosed alongside the figures. Which BCBS 239 principle is this practice primarily supporting?
The practice supports the accuracy and integrity principle. Reconciling risk figures to accounting records and disclosing known data gaps helps ensure the reported numbers are reliable and precise, which is what BCBS 239 requires of risk reports used by the board and senior management.
- AAccuracy and integrityCorrect
- BAdaptability
- CFrequency
- DDistribution
Explanation
BCBS 239 requires risk reports to be accurate and precise, which is supported by reconciliation to accounting sources and transparent disclosure of approximations or gaps. Adaptability concerns ad hoc requests, frequency concerns timing, and distribution concerns reaching the right recipients securely.
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