Skip to content

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

Under the BCBS 239 principles, which statement best describes the responsibility of a bank's board and senior management for risk data aggregation and risk reporting?

The board and senior management must ensure risk data aggregation and reporting are under strong governance, and they stay responsible even if the work is outsourced. Responsibility cannot be passed to IT or a vendor, and it covers the whole group in normal times as well as in stress.

  1. AThey must ensure the bank's risk data aggregation capabilities and reporting practices are subject to strong governance, and they remain responsible even when the work is outsourcedCorrect
  2. BThey may delegate full responsibility to the IT department, since data aggregation is a technical matter
  3. CResponsibility rests with the board only for the bank's largest legal entity, not for the group
  4. DGovernance requirements apply only during periods of financial stress

Explanation

Principle 1 requires strong governance over risk data aggregation and reporting, with the board and senior management responsible for it. Responsibility cannot be handed to IT or to a third party. The principles apply on a group-wide basis and in normal times as well as in stress.

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.

Practise Principles for Effective Data Aggregation and Risk ReportingFree diagnostic mock

More Principles for Effective Data Aggregation and Risk Reporting questions