BCBS 239

BCBS 239 defines concrete requirements for data storage, data transfer and risk reporting systems at banks. For many financial institutions, the implementation is associated with significant investments in their IT landscape, infrastructure, organisational structure and process organisation of the control areas. However, a targeted implementation also has enormous advantages, such as a better supply of information and decision-making support for the board of management.

Complying with the principles for effective aggregation of risk data and risk reporting in a timely manner poses major challenges for credit institutions. A group-wide analysis and solution is required, covering all group units, country subsidiaries and organisational units. Moreover, it is not enough to focus only on the generated and aggregated risk data; the quality, granularity and consistency requirements also apply to the underlying business and market data.

In order to implement BCBS 239 requirements in a timely manner, an analysis of the prerequisites of the respective institution should be carried out at an early stage. For this reason, KPMG has derived four fields of action from the principles of the Basel Committee, which can be used to structure the analysis of the current situation and deduce the need for implementation:

• Field of Action 1: IT architecture
• Field of Action 2: Data quality framework
• Field of Action 3: Risk reporting
• Field of Action 4: Organisational and IT Management

In view of the structural and far-reaching effects as well as the involvement of various management and IT areas of the banks in further regulatory requirements (e.g. implementation of FINREP / COREP, AnaCredit, restructuring and resolution plans or even IFRS conversions), an equally efficient and coordinated approach along the four fields of action is essential.

KPMG has a valid project approach, analysis and results templates, as well as staff with extensive practical experience in the integration of regulatory requirements and technical solutions. In addition, KPMG works with renowned manufacturers of innovative data integration and DQM tools to develop efficiently implementable strategic solutions for DQM management.