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

Which statement about the BCBS 239 'completeness' principle for risk data aggregation is most accurate?

Completeness requires aggregated risk data to capture all material risk exposures across the group, and any gaps must be identified, explained and managed. It does not mandate one central database, limit scope to credit risk, or require daily reporting for every risk type.

  1. AAggregated data should capture all material risk data across the banking group, and where gaps exist these should be identified and explainedCorrect
  2. BEvery data item must be held at the most granular level in a single central database
  3. CData should be complete only for credit risk since it is the largest risk type
  4. DCompleteness requires that reports be produced daily for all risk types

Explanation

Completeness means capturing all material risk data across the group, by risk type, business line, and entity, and identifying and explaining any gaps. It does not require a single database, restrict scope to credit risk, or mandate daily reporting for every risk, as frequency falls under timeliness.

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