Principles for effective data aggregation and risk reporting
The financial crisis that began in 2007 revealed that many banks, including global systemically important banks (G-SIBs), were unable to aggregate risk exposures and identify concentrations fully, quickly and accurately. This meant that banks' ability to take risk decisions in a timely fashion was seriously impaired with wide-ranging consequences for the banks themselves and for the stability of the financial system as a whole.
The principles are intended to strengthen banks' risk data aggregation capabilities and internal risk reporting practices. They complement other international initiatives underway and will allow banks to comply effectively with them. Implementation of the principles will strengthen risk management at banks - in particular, G-SIBs - thereby enhancing their ability to cope with stress and crisis situations. G-SIBs are required to implement the principles in full by the beginning of 2016 at the latest, and the Committee will be monitoring their progress towards meeting this deadline. In addition, the Committee strongly suggests that national supervisors apply these principles to institutions identified as domestic systemically important banks three years after their designation as such. Finally, the Basel Committee also believes that the principles can be applied to a wider range of banks, in a way that is proportionate to their size, nature and complexity.