31st January 2013 ACS BCBS 239 Principles for Effective Risk Aggregation and Risk Reporting.
Bulletin: Basel Committee on Banking Supervision issued their principles for effective risk aggregation and risk reporting. The financial crisis that began in 2007 revealed that many banks, including global systemically important banks (G-SIBs), were unable to aggregate risk exposures and identify concentrations fully, quickly and accurately. This meant that banks’ ability to take risk decisions in a timely fashion was seriously impaired with wide-ranging consequences for the banks themselves and for the stability of the financial system as a whole.
The Basel Committee’s Principles for effective risk data aggregation will strengthen banks’ risk data aggregation capabilities and internal risk reporting practices. Implementation of the principles will strengthen risk management at banks – in particular, G-SIBs – thereby enhancing their ability to cope with stress and crisis situations.