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

Which of the following best reflects the BCBS 239 'distribution' principle for risk reports?

Risk reports should reach the relevant parties in a timely way while preserving confidentiality. BCBS 239 distribution is about the right recipients and prompt delivery, so circulating to everyone, delaying for audit cycles, or limiting reports to regulators would all be inconsistent with it.

  1. AReports should be sent to all employees to promote transparency
  2. BReports should reach the relevant parties in a timely manner while maintaining confidentialityCorrect
  3. CReports should be distributed only after the next audit cycle has validated them
  4. DReports should be shared only with regulators, not internal management

Explanation

The distribution principle requires that risk management reports be distributed to the relevant parties and that this occur in a timely manner while ensuring confidentiality is maintained. Broad circulation to all staff breaches confidentiality, and waiting for audit cycles breaks timeliness. Internal management is a core recipient.

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