FRM Part I · FRM Exam Part I · Principles for Effective Data Aggregation and Risk Reporting
Under the BCBS 239 guidance on home-host cooperation, which arrangement is most appropriate when a bank operates through branches in several jurisdictions?
Supervisors should cooperate and share information on a bank's compliance with the data aggregation principles, particularly for cross-border operations. This reduces duplicated or conflicting reviews. Isolated host reviews, home-only reviews, or letting the bank choose recipients are not what the principles envisage.
- AEach host supervisor reviews data aggregation independently and does not share findings
- BOnly the home supervisor reviews the bank, and host supervisors are excluded
- CSupervisors cooperate and share information, where appropriate, on the bank's compliance, especially for cross-border operationsCorrect
- DThe bank itself chooses which supervisor receives review results
Explanation
The principles call for supervisors to cooperate with relevant authorities in other jurisdictions and exchange information on compliance, avoiding duplicated or inconsistent reviews of cross-border groups. Independent unshared reviews, home-only reviews, or bank selection of recipients contradict this.
Did you get it right without looking?
One question tells you little. A timed set on Principles for Effective Data Aggregation and Risk Reporting shows your real accuracy, how long you take and where you lose marks.
More Principles for Effective Data Aggregation and Risk Reporting questions
- A bank's board receives a 200-page risk report each month that contains every exposure limit and metric, with little commentary. Which BCBS …
- Which element should, under BCBS 239, a bank's risk reports cover to satisfy the comprehensiveness principle?
- A bank's credit risk report is delivered to senior management 25 business days after month-end, and the board's risk committee says the figu…
- A bank's board receives a monthly risk report that contains hundreds of pages of detailed position data but no summary of key exposures or e…
- A bank's supervisor plans a review of risk data aggregation and reporting. Which combination of tools is most consistent with BCBS 239's des…
- Under the BCBS 239 principles on risk reporting practices, which statement best describes the expected characteristic of a bank's risk manag…