Skip to content

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

Which practice best satisfies the BCBS 239 expectation on the distribution of risk reports?

Reports should be distributed to the relevant parties who need them for decisions, on time, while maintaining confidentiality. Circulating them to everyone breaches confidentiality, keeping them within the risk function leaves decision makers uninformed, and delaying supervisor access until after a crisis defeats the purpose of reporting.

  1. ASending every report to all employees to maximise transparency
  2. BDelivering reports to relevant parties only, while ensuring confidentiality is maintained and the information arrives on timeCorrect
  3. CLimiting distribution to the risk function so reports remain consistent
  4. DDistributing reports to supervisors only after a crisis has ended

Explanation

The distribution principle requires that risk reports reach the right recipients, who need them to make decisions, in a timely manner while preserving confidentiality as appropriate. Broad circulation breaches confidentiality, and restricting reports to the risk function or delaying supervisor access defeats the purpose.

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