BCBS 239
Two Visions of Risk Repor ting Prior to the subprime meltdown,
many banks lacked sufficient risk reporting processes and had weak
risk data aggregation capabilities, resulting in big losses.
PRE-SUBPRIME CRISIS
Many banks lacked the ability to aggregate risk exposures at the
group level, across business lines and between legal entities.
INSUFFICIENT IT AND RISK PRACTICES
THE OPTIMIZED BANK
The International Monetary Fund estimated that large US and
European banks lost more than US$1 trillion on toxic assets and
from bad loans from January 2007 to September 2009, largely due to
faulty risk data.1
$1 trillion
No clear visibility across network of data stores and siloed
systems.
A mere 15% Banks could reduce of organizations losses by 2%– 4%
by have data governance that achieving better data is linked to
business quality and superior initiatives, objectives, and risk
insights.3
outcomes, according to Forrester research.2
Uses a reference architecture that turns enterprise data into a
strategic asset.
Uses risk-adjusted metrics to inform all aspects of the business
and mitigate future risk.
5% –10% of operational costs
Banks can save 5% –10% of some big operational cost categories
through better data management and fewer reconciliations due to
Basel Committee on Banking Supervision compliance.4
BENEFITS OF REFERENCE ARCHITECTURE Banks need a reference
architecture that will make for easy compliance with BCBS
principles.
Ensure integration across banking groups and fully support data
aggregation capabilities and reporting practices with adequate
controls for easy compliance with BCBS 239.
View relevant data in single dashboard; accurate and reliable
risk data aggregation. Generate aggregated data per desired
frequency.
From source to reporting, capture every piece of relevant
data.
BCBS 239 demands an unparalleled level of prescriptive
compliance pertaining to the means, methods, and management of
complex data within the bank. With Oracle Financial Services
Analytical Applications, solution stack banks can simultaneously
solve BCBS 239 and many other top-of-house requirements that pose
significant data, process, and analytical management
challenges.
Watch the webinar in which Chartis and Oracle discuss
principles, tools, and methodologies for solving for BCBS 239 and
other regulatory challenges.
BCBS 239: HOW TO TURN CHALLENGES INTO OPPORTUNITIES
VIEW WEBINAR
(1.) Chang, Winston, “The Financial Crisis of 2007-2010,” SUNY
at Buffalo, Department of Economics, 2011. (2.) Goetz, Michelle,
“Are Data Governance Tools Ready for Data Governance?” Forrester
Research, 2014. (3.) McKinsey & Co., “It’s Not Just About
Getting your Ratios Right,” McKinsey & Co, 2013. (4.) Ibid.
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https://webinar.banktech.com/19366?keycode=CAA1AC
