Timeliness in Risk Data Aggregation for Banks PPT

This PPT slide, part of the 27-slide BCBS 239 - Risk Data Aggregation PowerPoint presentation, outlines the principle of timeliness in risk data aggregation for banks, emphasizing the necessity of having relevant data readily available at any given moment. It begins with a clear assertion that timeliness is not a fixed concept, yet it is crucial for banks to ensure they possess the required data. The content is structured into 2 main sections: examples of critical risks and the measures to define and identify these risks.

Under the examples of critical risks, several categories are listed, including aggregated credit exposure to large corporate borrowers, counterparty credit risk exposures, trading exposures, liquidity risk indicators, and operational risk indicators. Each category highlights the importance of understanding the nature of these risks and their potential impact on the bank's operations.

The second section details specific measures that can be employed to define and identify these critical risks. For instance, it suggests establishing thresholds for credit exposure to large clients, assessing counterparty exposure and ratings, and evaluating position and portfolio exposures. It also emphasizes the importance of liquidity ratios, such as the liquidity coverage ratio and net cumulative cash flow, as well as operational risk self-assessment results.

The concluding statement reinforces the need for banks to have robust risk systems capable of swiftly generating aggregated risk data, particularly during critical periods. This highlights the urgency and importance of timely data in effective risk management. Overall, the slide serves as a guide for banks to enhance their risk data aggregation capabilities, ensuring they can respond promptly to potential threats.

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Risk Management Operational Risk