Webinar on demand, Moody’s Analytics, Accessed March 2015
Source: Webinar Moody’s and related to BCB 239 principles of effective risk data aggregation
Stress testing requirement of the FRB
- Will cover G-SIBs in Jan 2016 and D-SiBs later on
- BCBS239 – 2013 has 14 principles of which Weak governance and lack of firm wide data management are points of attention
- Reporting takes sometimes several days or weeks
- Banks are not able to aggregate data especially in time of stress
- Not able to report in short period of time
- Must reduce manual transfers
- Automate validation of data
- Old mentality was: “Not touching that, costs too much and will never be finished on time and will end up costing a lot more and will lose my job”
- Now mentality is (will be) : “Why didn’t you spend the money, do you want to lose your job?”
- Need to focus on data quality process