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

Which statement best describes the relationship between BCBS 239's overarching governance and infrastructure principles and its other principle groups?

The governance and infrastructure principles underpin the other groups: risk data aggregation capabilities, risk reporting practices, and supervisory review. They apply in normal times and in stress. They do not replace supervisory review and are not limited to reporting.

  1. AGovernance and infrastructure underpin the three other groups: risk data aggregation capabilities, risk reporting practices, and supervisory reviewCorrect
  2. BThey apply only to risk reporting and have no bearing on data aggregation
  3. CThey replace the need for supervisory review by authorities
  4. DThey apply only during periods of financial stress

Explanation

BCBS 239 has 14 principles in four groups: overarching governance and infrastructure, risk data aggregation capabilities, risk reporting practices, and supervisory review, tools and cooperation. Governance and infrastructure support the others and apply in normal and stress times. Supervisory review is a separate group, not replaced.

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