These principles for effective risk data aggregation and internal risk reporting practices apply to systemically important banks and support internal risk management and decision-making processes.

Version effective as of 15 Dec 2019

First version in the format of the consolidated framework.

Objectives

36.1 This chapter presents a set of principles to strengthen banks' risk data aggregation capabilities and internal risk reporting practices (the Principles). The Principles are expected to support a bank's efforts to:

(1) enhance the infrastructure for reporting key information, particularly that used by the board and senior management to identify, monitor and manage risks;

(2) improve the decision-making process throughout the banking organisation;

(3) enhance the management of information across legal entities, while facilitating a comprehensive assessment of risk exposures at the global consolidated level;

(4) reduce the probability and severity of losses resulting from risk management weaknesses;

(5) improve the speed at which information is available and hence decisions can be made; and

(6) improve the organisation's quality of strategic planning and the ability to manage the risk of new products and services.