One-page explainer slide. Prepared by William M. Cohee

1. BCBS 239
Mitigating Systemic Risk Through Better Data
● Borne out of the GFC post-mortem
● High-quality data & effective risk reporting –
vital to health and stability of the financial
system as a whole
● Risk Management culture & practices –
rigor varied, weaknesses revealed
● Degree of risk reporting sophistication –
fundamental inconsistencies identified
● Data Management capabilities – fits and
starts across the industry, wide spreads
in maturity levels. Control gaps exposed
The 4 Pillars of BCBS 239
● Sets baseline expectations of all SIBs for Effective Risk Data Aggregation and Reporting
● Empowers local Regulators to hold SIBs accountable for adherence to the Principles
● Ultimate goal is to promote Global Financial Stability and head-off another Financial Crisis
● Beyond compliance, there is a significant payoff for Banks aspiring to compete on Data Analytics
Risk Data
Aggregation
Data Governance
&
Infrastructure
Risk Reporting
Practices
Supervisory Review
Tools & Cooperation
- Apply to Regulators -
● Constitute a set of 14 Principles
● 11 Principles for SIBs, 3 for Supervisors