Risk Data Aggregation and Risk Reporting
Implement a dynamic approach to risk management and reap the benefits.
Recently, the Basel Committee on Banking Supervision (BCBS) issued its second progress report on banks’ adoption of the committee’s Principles for Effective Risk Data Aggregation and Risk Reporting. The principles and requirements apply specifically to the list of the 31 global systemically important banks (G-SIBs) identified by the Financial Stability Board (FSB) in 2011.
Risk Data Aggregation and Risk Reporting from CSC brings G-SIBs into compliance with BCBS principles by improving data accuracy, timeliness, completeness and adaptability through aggregation, for better data management and more efficient reporting.
The idea behind the 14 principles is simple — banks need to quickly identify their exposures and prevent them from escalating.
Together with world-class alliance partners, CSC takes an enterprise-wide, full life-cycle approach to Risk Data Aggregation and Risk Reporting. CSC believes that to be thoroughly prepared, banks should consider implementing a more dynamic risk-management approach and set of capabilities. A wise approach would include the following steps:
- Establish a clear, measurable and actionable risk strategy.
- Embed risk management within normal decision-making processes.
- Integrate and reflect risk planning in architecture and infrastructure programs.
- Aggregate data.
- Commodify risk reporting.
An enterprise-wide risk data aggregation and reporting approach positions banks to best leverage data assets and maximize their investments. Benefits include:
- Automatically embedding compliance into core processes
- Greatly improving efficiency and reducing duplication and complexity cost
- Proactively meeting the objectives of the regulatory regime instead of playing catch-up
Banks can actually benefit from having aggregated and consolidated data by using it to create value and gain competitive advantage. Moreover, smart banks can do more than merely comply. By implementing dynamic risk management, and by aggregating systems, data and reporting, banks can meet compliance rules at lower cost while laying the foundation for new services that will satisfy customers, add revenue and boost competitiveness
CSC offers banks the opportunity to partner with leading providers to deliver innovative solutions. With the use of analytics, warehousing and reporting factories, regulatory requirements can be efficiently managed as automation is improved, transparency of reporting is developed, and protection of the consumer is increased.