At the Data Governance Financial Services Conference in New York City this week, presenters and attendees alike were buzzing about BCBS 239. As they should be! While the internationally recognized Basel Committee on Banking Supervision (BCBS) published their Principles for effective risk data aggregation and risk reporting back in January 2013, the three year head start to comply is looming. These principles are a positive force in the industry, aimed at mitigating systemic risk across large banks; a factor contributing to the 2008 financial collapse. Both Global and Domestic Systemically Important Banks (G-SIBs & D-SIBs, respectively) are in the crosshairs and expected to follow suit by the time the ball drops in Times Square in 2016.
By now, banks have been self-analyzing and reporting their assessments and the Bank for International Settlements, or BIS, has given some additional color to their guidelines to help give banks a better idea of what to expect and where their peers are.
There are questions from regulators around strictness in the first go around. They are expected to be more lenient in testing and less invasive in terms of enforcement of penalties like fines and capital add-ons. Banks are in a bit of a grace period now, and should use it to really get a leg-up so they are not under the gun later.
In addition to the hot topic of BCBS 239, here are three takeaways from the Data Governance Financial Services Conference:
It’s an uncertain but exciting time for data professionals in the Financial Services industry. Those able to put limited available headcount in the right place and acquire the right kinds of technology will be better off. How do you think your organization would fair against the BCBS 239 principles?