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

Under the BCBS 239 principles, which of the following best describes the principle of 'accuracy and integrity' in risk data aggregation?

Accuracy and integrity means aggregated risk data must be reliable, supported by controls as strong as those for accounting data, with reconciliation and limited manual intervention. BCBS 239 does not prescribe a single platform, a universal 24-hour deadline, or external audit of all risk data.

  1. AA bank should be able to generate aggregated risk data that is reliable, with controls comparable to those applied to accounting dataCorrect
  2. BA bank should be able to produce risk data within a fixed 24-hour deadline in all circumstances
  3. CA bank should use a single IT platform for all legal entities to avoid reconciliation
  4. DA bank should aggregate only data that has been audited externally in the prior year

Explanation

The accuracy and integrity principle requires aggregated risk data to be accurate and reliable, with controls as robust as those over accounting data and with minimal manual reliance. A fixed 24-hour deadline is not prescribed, a single IT platform is not mandated, and external audit of all data is not required.

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