BCBS 239: How Can Banks Meet the Challenge?
On 18 March 2015, over 100 individuals descended on the offices of the British Bankers’ Association in London to attend a panel discussion entitled: BCBS 239: How Can Banks Meet the Challenge? The event was sponsored by Asset Control, provider of financial data management software and services, dedicated to helping banks and asset managers get high-quality financial data to the people and applications that need it.
The panel included Carl Taylor, Principal Risk Specialist, Bank of England, Prudential Regulatory Authority; Shaun Rolls, Chief Controller, Nordea Bank; Boyke Baboelal, Senior Product Manager, Asset Control; and Carlos Diaz Alvarez, Head of RDA&RR, Banco Santander. It was moderated by Kathryn Kerle, Head of Enterprise Risk Reporting, Royal Bank of Scotland. The topic of risk data aggregation and reporting is one addressed by PRMIA’s new Operational Risk Management (ORM) course.
On 5 March, in partnership with Deloitte, we held our third stress testing focus group event. The event was held at Deloitte’s New Street Square offices in London. The topics discussed relate primarily to Risk Management Practices, module three of our Professional Risk Manager certification
Nathanaël Benjamin, Head of Risk Architecture Division, Prudential Regulation Authority (PRA) spoke about the Firm Data Submission Framework. This is the framework by which banks submit data to the PRA. It gives the PRA access to quality data from banks for stress testing purposes.
James Belmont of Baringa Partners spoke about the pitfalls of stress testing. He stated off by considering the underpinnings of stress tests and then looked at the entire stress testing process, from the setting of scenarios, sourcing of data, generating results, through to decision making. More information can be found at: http://www.baringa.com/our-thinking/point-of-view/stress-testing-avoiding-the-pitfalls-and-realising.
Stress testing is an important tool in the management of risk and is gaining increasing focus from regulators; the first parallel stress tests of the UK banks were executed last year, and a huge amount of importance is placed on the US Comprehensive Capital Analysis and Review (CCAR).