Basel Committee 2012 – Risk Data Aggregation

The key principles of the June 2012 paper from the Basel Committee on Banking Supervision entitled ‘Principles for Effective Risk Data Aggregation and Risk Reporting' marks out a new era in how banks need to think about information technology and data architectures in the context of risk aggregation.

The first step will comprise company self-assessments in 2013. This will be followed by implementation of the principles by 2016. Bank executives will be expected to both understand and be in control of the current state of risk aggregation as well as driving toward a future improved state, whilst maintaining flexibility.

Previously, this flexibility has led to a mixed approach to risk aggregation which resulted in shortcomings demonstrated in the financial crisis. This white paper reviews current challenges and the options available for ensuring compliance with these new standards.