The implications of regulatory reforms on global financial markets have never been greater. In response to the global financial crisis, the Basel Committee issued several principles for devising a sound risk management system with references to data aggregation. Efforts to improve the ability of banks to aggregate risk data is primarily aimed at restoring the strength and viability of global markets, enabling firms to better withstand future episodes of economic distress; a notion that is widely accepted by banking institutions.
Despite recognizing these benefits, in order for banks to comply with these principles successfully, they need strong risk governance processes that are supported by enhanced data, strong data governance program, as well as sound data integration and management technology infrastructure; requiring significant investment by many institutions.
This report, based on a Lepus Research survey of 27 major financial institutions, from diversified geographical regions, explores existing capabilities and strategies being taking to comply with the BCBS 239 principles looking at where these firms are in the following areas: