Skip to content

FRM Part II · FRM Exam Part II · Risk Reporting

During a market stress event, the board asks a bank for its aggregate exposure to a specific country across all legal entities within a few hours. The bank can only deliver after three days because systems differ by entity. Which BCBS 239 principle is most directly addressed by the gap?

The adaptability principle applies. BCBS 239 expects banks to aggregate risk data flexibly to meet ad hoc requests, including in stress or crisis. Taking three days because entity systems differ shows the bank lacks that capability and needs more integrated data architecture.

  1. ARisk data aggregation capabilities should be flexible enough to meet ad hoc requests, including in stressCorrect
  2. BReports should be distributed only to the board
  3. CRisk models should be backtested annually
  4. DReports should be limited to quantitative data

Explanation

BCBS 239 requires adaptability: the bank must produce aggregated data on demand for ad hoc requests, including during stress or crisis. A three-day delay caused by fragmented systems shows this capability is lacking. The other options are not BCBS 239 requirements on this issue.

Did you get it right without looking?

One question tells you little. A timed set on Risk Reporting shows your real accuracy, how long you take and where you lose marks.

Practise Risk ReportingFree diagnostic mock

More Risk Reporting questions