Progress in adopting the "Principles for effective risk data aggregation and risk reporting"

This version

BCBS  | 
Implementation reports
21 June 2018
Status:  Current

The Basel Committee on Banking Supervision today published its latest progress report on banks' implementation of the Principles for effective risk data aggregation and reporting. The Principles, issued in January 2013, aim to strengthen banks' risk data aggregation and risk reporting with a view to improving their risk management, decision-making processes and resolvability.

The progress report is based on the results of a self-assessment survey completed by authorities with supervisory responsibility for global systemically important banks (G-SIBs). The report reviews G-SIBs' progress in implementing the Principles in 2017. A previous progress report, published in March 2017, assessed implementation during 2016.

The assessment covered 30 G-SIBs designated in 2011-12 that were required to adopt the Principles by January 2016. It notes that in 2017 most G-SIBs made, at best, marginal progress in implementing the Principles. G-SIBs have found it challenging to comply with the Principles, due mainly to the complexity and interdependence of IT improvement projects. As a result, the expected date of compliance has slipped back for many banks.

In view of this outcome, and to promote further adoption of the Principles, the Basel Committee has made the following recommendations:

  • Banks should continue to implement the Principles according to the roadmaps agreed with their supervisors and consider how implementation would benefit other data-related initiatives and requirements; and
  • Supervisors should maintain their emphasis on ensuring that banks fully implement the Principles. This includes meeting with banks' boards of directors and/or senior management in 2018 to receive updates on implementation progress. Supervisors should also continue to promote home-host cooperation in relation to the implementation of the Principles by global banking groups.

The Committee will continue to monitor G-SIBs' progress in adopting the Principles and plans to conduct the next assessment in 2019.