Stress Testing as a Catalyst for BCBS 239 – or Vice Versa?

Original by reinie, 2017 

This summary note was Posted on

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 gouvernance 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