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

Regarding the scope and timing of BCBS 239, which statement is correct?

BCBS 239 was designed for global systemically important banks, and supervisors are encouraged to apply it to domestic systemically important banks. It covers risk data and reports across the banking group, including internal management reporting, and is not an accounting standard or insurance rule.

  1. AIt applies to global systemically important banks and is also recommended by supervisors for domestic systemically important banks, covering risk data across the banking groupCorrect
  2. BIt applies only to insurance companies and pension funds
  3. CIt applies only to data used for regulatory capital reports, not internal management reports
  4. DIt is a legally binding accounting standard replacing IFRS 9

Explanation

BCBS 239 was designed for G-SIBs, with national supervisors encouraged to apply it to D-SIBs, and it covers all risk data and reports at group level including internal management reporting. It is guidance on risk data, not an accounting standard and not for insurers.

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