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

A supervisor is carrying out a review of a bank's risk data aggregation under BCBS 239. Which of the following is a tool the principles specifically identify as appropriate for the supervisor to use?

The principles identify independent reviews by third-party or external experts as a supervisory tool, alongside onsite reviews, questionnaires and reviews of audit reports. Supervisors do not set the bank's risk appetite, run its data systems or replace its officers as part of assessing compliance.

  1. ARequiring the bank to set its risk appetite at the level the supervisor prefers
  2. BCommissioning reviews by independent external experts, such as third parties, to assess complianceCorrect
  3. CDirectly managing the bank's data warehouse during the review period
  4. DReplacing the bank's chief risk officer during the review

Explanation

BCBS 239 lists supervisory tools including questionnaires, onsite reviews, reviews of internal and external audit reports, and independent reviews by third-party experts. The other options go beyond the supervisory tools described: supervisors do not set appetite, run data warehouses, or choose officers as part of this review.

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