Business Cases

Risk Data Aggregation

Inaccurate data lead to inaccurate management decisions

The Risk Data Aggregation Requirements introduced by the Basel Committee on Banking Supervision (BCBS), introduced a set of Data & Risk management related principles which have to be met across the banking sector. This aims to ensure Banks are able to clearly measure the performance vs. risk tolerance ratio.

In order to achieve this task, banks must implement significant changes across the following departments:

  • Governance & Control
  • Management Information & Reporting
  • Accounting
  • Chief Data Office / Data quality & Structural Systems
  • IT Infrastructure & Architecture
  • Risk Management Office

Key Benefits:

  • Robust reporting infrastructure, which may be used by the Executive & Senior Managers to make accurate strategic decisions based upon solid data and facts.
  • Improve Oversight, by enabling higher data granularity, traceability while simplifying the Control Models, and improving error detection speed which leads to loss reduction.
  • Enhance the management information systems providing a clear audit trail for both, managerial and legal use.
  • Provide an effective Risk Assessment tool to monitor the banks’ real time risk position & exposure.
  • Reduce manual intervention and therefore risk of error, leading to a more automated, quicker, and cost effective processes.

Based on our experience in Risk Data Aggregation Projects in top tier financial institutions, MBC can provide guidance to turn this regulatory requirement into a competitive advantage. We suggest a 3 prong strategy to tackle these changes successfully:

  1. Self-Assessment: An accurate & robust diagnostic of the existing Management Information Processes and the Accounting & Control Models, will provide a clear benchmark against the RDA requirements while highlighting the GAPs to be bridged to achieve the change.
  2. Benefit Analysis: Align the strategic vision of the Bank with the key changes identified, will turn the lemon into lemonade by using the RDA umbrella to define key cross-departmental changes in Governance, Data aggregation and MI analysis capabilities.
  3. Implementation: This is the core of the competitive advantage. A clear project management office (PMO) responsible to steer the Bank through the relevant changes effectively is of key importance. We suggest aligning the IT teams as the pillar for the Data Transformation Project.
    May Business Consulting can help you execute the above-proposed strategy, balancing the internal capabilities against the regulatory requirements, performing a clear self-assessment, defining and implementing the necessary changes to turn a regulatory requirement into a competitive advantage.

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