The document discusses various reports and surveys related to banks' ability to aggregate, report on, and govern risk data as required by the Basel Committee on Banking Supervision's Principles for Effective Risk Data Aggregation and Risk Reporting (BCBS 239). Key points include: - A 2013 BIS report found banks rated themselves higher on complying with risk reporting principles than risk data aggregation principles. - A 2014 EY report found that only 6% of global systemically important banks could provide intraday firm-wide risk profile reports. - An 2014 Oliver Wyman report estimated banks could lose up to 10% profits due to poor data. - 2014 Markit surveys found most banks have only a moderate or poor

1. Risk data
aggregation: P3 - P6
Risk
reporting: P7 - 11
Governance
and infrastructure: P1, P2
on the
riskreporting
principles
than they
generally
assigned
themselves
higher
ratings
did on
risk
dataaggregation
principles
[BIS progress report: Dec 2013]
Only
6%GSIBs can provide
firm wide reports on
risk profile intraday
[EY: Oct 2014]
BISreport Dec 2013:
principles with
lowest reported
compliance
P2 - Data architecture /
IT infrastructure
P6 - Adaptability
P3 - Accuracy / integrity
Bank principles for BCBS 239 are built around:
Profiling Bank Risk
DNA
Banks profits penalised by up to 10%
as a result of poor data
[Oliver Wyman: Sep 2014]
Risk data profiling:
How well do bankers understand their
risk data
universe
Moderate
Quite
complete
Very
bad
Not
sure
40%
12%
[Markit survey: Nov 2014]
36%
12%
25%
Not at all
58%
Yes, partially
17%
Yes, fully
Data lineage:
who touched
what
when
where
Bank’s confidence
in ability to track
data charges
[Markit survey: Nov 2014]
BCBS 239
AT A GLANCE
Illustration:MarkSambrook
To download the full report visit www.markit.com/BCBS239