Implementation of BCBS239 Principles

GFT were approached by a G-SIB to help the bank become compliant with BCBS 239. They had undertaken a self-assessment to understand its current capabilities in the risk departments and in terms of performing against the BCBS 239 Principles.

The organisation had extremely manual processes in place to produce the key metrics required and as an example had 150 offshore FTE’s solely employed to produce key reports and metrics for Market Risk.

  • We were approached by a G-SIB to help the bank become compliant with BCBS 239.  They had undertaken a self assessment to understand its current capabilities in the risk departments ain terms of performing against the BCBS 239 Principles.

  • The Risk landscape, into which the principles had to be implemented. was extremely complex and this was compounded by global strategic change initiatives that the bank had undertaken which would change the landscape and data flows within 2 years.

  • The organisation had extremely manual processes in place to produce the key metrics required and as an example had 150 offshore FTE’s solely employed to produce key reports and metrics for Market Risk.

  • There was a lot of debate internally on the best approach to take to implement the principles and prove compliance with the principles by the deadline of 1st January 2016.

  • An additional complexity was the lack of time that could be spent with appropriate SME’s within the Risk departments as these individuals were needed to help understand the detailed data and process flows.

  • GFT were engaged to provide leadership and Programme Management and produce a implementation methodology that would be accepted by all the Risk Departments and allow the programme is to deliver the principles to be embedded in the RTB world post January 2016.

  • GFT designed the methodology that would allow the implementation of the principles covering Programme Framework, IT Strategy and Architecture, Governance, RTB Transition and Target Model

  • Ran detailed workshops to identify key processes and control points and produced detailed BRDs

  • Produced Functional Design Documents that enabled core system changes to be planned

  • Designed and built a global BCBS 239 Compliance dashboard covering Market, Credit, Liquidity, Operational Risks and Finance.  to be used by operational staff and senior management to track key risk metrics across the organisation.

  • Over 20 workshops conducted across the Risk business addressing taxonomy, operating model, process flows, control points and governance for metric creation globally.

  • Programme Managed the end to end build of the core reporting dashboard

  • Analysis of manual steps in the process and assessment of opportunity to automate

  • Engagement with business to help embed in new processes

  • Identification of data and process and associated control points from a timeliness, accuracy and completeness perspective.

  • Ongoing delivery highly flexible and scalable solution

  • Rolled out to all risk departments

  • Governance process implemented

  • Data taxonomy completed and aligned with the enterprise approach

  • Core system builds managed so data flowed automatically

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