ECB: Final Guide on Effective Risk Data Aggregation and Risk Reporting

? The ECB, recently, published the final guide on effective risk data aggregation and risk reporting (RDARR) building on principles established by the Basel Committee on Banking Supervision (BCBS 239).

? The ECB conducted an 11-week public consultation starting on the 24 July 2023, inviting comments on various aspects of the guide. Over 300 stakeholders participated in a related meeting, and a total of 308 comments were received from financial institutions, associations and other stakeholders.

? Key topics addressed in the feedback received: a) Inclusion of climate-related data: there was a significant push for the guide to explicitly support the aggregation and reporting of climate-related risks; b) Clarification of terms and responsibilities: respondents sought greater clarity on terms used in the guide and the distribution of responsibilities within management bodies; c) Data governance framework: questions were raised about the applicability and scope of the data governance framework, especially concerning non-risk data; d) Implementation concerns: stakeholders expressed concerns about the implementation timelines and the need for practical guidance on meeting the expectations outlined.

? The ECB acknowledged these inputs and proposed revisions to the draft guide to incorporate these suggestions. The ECB acknowledged the need for ongoing dialogue with the industry to address uncertainties and facilitate compliance.

Original source: ssm.supervisory_guides240503_riskreporting.en.pdf (europa.eu)