BCBS 239 - Start Now If You Have Not Done So Already !

BCBS 239 "Principles for effective risk data aggregation and risk reporting" was published in January 2013 and for many in the Banking industry the implementation date of 1st Jan 2016 seemed a long way off. Further, in the current form of broad principles BCBS 239 has been regarded by many as a 'watch item' further out on the horizon while progressing more pressing matters. As we approach the end of 2014 we are seeing our clients receiving increasing attention by local regulators seeking assurance of meeting the implementation date.

BCBS 239 can be seen broadly as the follow up to Basel 3 - with Basel 3 providing the mandatory measurable requirements for Capital Adequacy, Risk Mangement, Liquidity and Leverage - and BCBS providing direction on the required governance, infrastructure, process, controls and supervision required - i.e. the "how".

The impacts of BCBS 239 go well beyond an organisation's Risk or Data Management functions.

The 14 principles published under BCBS 239 are grouped under the following four categories:

1. Overaching governance and infrastructure

2. Risk data aggregation capabilities

3. Risk reporting practices

4. Supervisory review, tools and cooperation

As is often the industry norm with the introduction of new far-reaching regulations detailed guidance and requirements from the regulator will emerge only over time leaving little time for interpretation and implemention. The conclusion is clear - if you have not done so already then preparation and implementation of BCBS 239 needs to begin now.

For further information and opions contact Campbell Paterson (campbell.paterson@acp-mc.com or mob. 07711541970).