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FRM Part II · FRM Exam Part II · Risk Reporting

Under BCBS 239, which statement best describes the responsibility for compliance with the principles at a bank?

The board and senior management are responsible. BCBS 239 treats governance as an overarching principle, requiring them to ensure the bank's risk data aggregation, architecture and IT infrastructure meet the principles across all material risks. It is not solely an IT task, and auditors only review it.

  1. AThe board and senior management are responsible for ensuring the bank's governance, data architecture and IT infrastructure meet the principlesCorrect
  2. BCompliance is the sole responsibility of the IT department
  3. CCompliance is only required for credit risk data
  4. DExternal auditors are responsible for risk data aggregation capabilities

Explanation

BCBS 239 sets governance as an overarching principle: the board and senior management must strongly support risk data aggregation and reporting, and own its quality. Delegating to IT alone or limiting scope to credit risk is inconsistent with the principles, which cover all material risks. Auditors review but do not own the capability.

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