Data Governance

The Basel Committee on Banking Supervision has issued the “Principles for Effective Risk Data Aggregation and Risk Reporting” document that defines high-level principles for governance of risk data and reporting capabilities. One of the key aspects of the regulation is the bank’s ability to demonstrate the knowledge and manageability of its business and IT processes. Additionally, national regulators are choosing to apply the spirit of the principles to a wider range of financial institutions.

To meet the requirements of the BCBS Principles, financial institutions need to review and, where necessary, enhance a number of business and technology areas:

• Enhance infrastructure for reporting key information
• Enhance management of information across legal entities and at global consolidated level
• Improve speed and quality of information available and thereby the decision-making process
• Reduce the probability and severity of losses from risk management weaknesses

At Innovations Boutique we have developed a process analysis and reengineering methodology as well as a process capture toolset. Along with the experience in business process analysis and reengineering gained through a number of engagements with Canadian and U.S. financial institutions, this methodology and toolset enable us to help our clients effectively assess their overall preparedness to comply with the BCBS Principles and identify the related challenges. Most of these changes have broad impact across the enterprise and carry a significant price tag.

Our framework and tools help our clients to baseline the current state and to plan and track changes in processes, applications and data assets. This systematic approach also reduces the total cost by utilizing the cross-purpose analysis and by eliminating the duplication of efforts.

Our BCBS Services Can Successfully Support and Develop a Wide Range of Business Initiatives

• Enterprise Stress Test Process Improvement: Assess compliance of the enterprise stress test process with the BCBS “Principles for Effective Risk Data Aggregation and Risk Reporting” to enable the planning and undertaking of initiatives whose objective is to enhance management of information across legal entities, jurisdictions and information that is consolidated at various levels of the enterprise. Enhance business and technology infrastructure for producing key risk management reports.
• ACL/PCL Reporting Process Improvement: Create a common north/south view for the recognition and processing of ACL/PCL for both risk and finance processes. Automate the capture, calculation and reporting of ACL/PCL data. Enhance business and technology infrastructure for producing the key risk reports for all portfolios (e.g., corporate, commercial and retail).
• Market Risk Data Aggregation and Reporting: Assess compliance of the market risk data aggregation and reporting process with the BCBS “Principles for Effective Risk Data Aggregation and Risk Reporting” to enable the planning and undertaking of a number of initiatives whose objective is to enhance management of information across legal entities, jurisdictions and information that is consolidated at various levels of the enterprise. Enhance the business and technology infrastructure for producing key risk management reports.