BCBS 239 was designed by the Basel Committee on Banking Supervision to strengthen risk management practices in the banking sector through standardization of data practices. It outlines principles for banks to enhance risk data aggregation and reporting, ensuring that decision-makers (i.e. a bank’s board members, senior management, etc.) can rely on accurate and timely risk data. The standard revolves around three key pillars:

1. Overarching Governance and Infrastructure
2. Risk Data Aggregation Capabilities
3. Risk Reporting Practices

These pillars aim to increase transparency, accuracy, and reliability in risk management, ultimately ensuring financial stability.

The standard highlights the need for a capable infrastructure / system to achieve these goals. Though it was introduced in 2013 and applied in 2016, banks still have a long way to go to build infrastructures to aid compliance to BCBS 239 standards.

According to the ‘Progress in adopting the Principles for effective risk data aggregation and risk reporting’ study published by BIS in November 2023, only 2 banks of the 31 banks observed are fully compliant to the standard. At the same time, the overall compliance rating has decreased for certain principles as compared to BIS’s last research. This is partly a consequence of supervisors paying higher attention to inspections.

With the need for better data management, along with newer technology being introduced to the market to address the decade-long gap, banks are now moving closer to a timeline where supervisors are more stringent in enforcing BCBS 239 for better risk data management. Banks’ priorities now lie in building a data architecture and IT infrastructure that supports data documentation, lineage, quality, adaptability, and timely aggregation to be prepared for risk related decisions and supervisory reviews.

This document guides you through a checklist of the requirements and the gaps in capabilities needed for banks to achieve them, along with recommendations of approaches and technologies suited for the tasks, including ElysianNxt’s advanced, integrated, and performance proven technology solutions that are essential building blocks to support banks in meeting the BCBS 239 standard.

Document contents include:

• BCBS 239 Principles

  • Requirements
  • Capabilities Needed

• An Infrastructure Suited for BCBS 239

  • Integrated Risk Management Architecture
  • Risk Data Management and Regulatory Reporting Infrastructure

Download to document to learn more about how your bank can comply to the BCBS 239 standard in 2025 and beyond.