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

During a stress event, a bank's senior management requests an ad hoc report on exposures to a specific sector. The bank can only deliver it after several weeks because data must be gathered manually from many systems. Which BCBS 239 aggregation capability is most clearly lacking?

Adaptability is lacking. BCBS 239 expects banks to generate aggregate risk data flexibly for ad hoc requests, especially in stress or crisis. Needing weeks of manual gathering from many systems shows the bank cannot meet on-demand needs, unlike issues of completeness or governance.

  1. AAdaptability, the ability to generate aggregate risk data to meet a broad range of on-demand, ad hoc requestsCorrect
  2. BCompleteness, because the report covers only one sector
  3. CComprehensive use of external ratings in all reports
  4. DGovernance over the board's risk appetite statement

Explanation

Adaptability requires a bank to produce aggregated data flexibly for ad hoc requests, including during stress or crisis. A weeks-long manual effort shows this is missing. Completeness relates to capturing all material exposures, not the breadth of a given request.

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