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

Which statement about risk reporting frequency under BCBS 239 is most accurate?

Reporting frequency should reflect the nature and volatility of the risk and recipient needs, and the bank must be able to produce reports faster during stress or crisis. BCBS 239 does not mandate a single frequency for all reports or give the external auditor this role.

  1. AAll risk reports must be produced daily regardless of risk type
  2. BFrequency should reflect the nature of the risk, the needs of recipients, and the bank's ability to produce reports, including more frequent reporting in stress or crisisCorrect
  3. CFrequency is set by the external auditor each year
  4. DReports for the board should be produced less often than reports for traders in all circumstances

Explanation

BCBS 239 says the board and senior management should set reporting frequency, considering the risk's volatility and importance. The bank must also be able to produce accurate reports quickly in stress or crisis. A uniform daily rule or auditor-set schedule is not required.

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