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In characterizing various dimensions of a bank’s data, the Basel Committee has suggested several principles to promote strong and effective risk data aggregation capabilities. Which statement correctly describes a recommendation which the bank should follow in accordance with the given principle?

A) The integrity principle recommends that data aggregation should be completely automated without any manual intervention.

B) The completeness principle recommends that a financial institution should capture data on its entire universe of material risk exposures.

C) The adaptability principle recommends that a bank should frequently update its risk reporting systems to incorporate changes in best practices.

D) The accuracy principle recommends that the risk data be reconciled with management’s estimates of risk exposure prior to aggregation.

答案:B

解析:The completeness principle recommends that a bank be able to capture and aggregate all data on the material risks to which it is exposed across the organization. This will allow it to identify and report risk exposures, concentrations, and set exposure limits.

Which of the following data issues is likely to increase risk for an organization?

I. Data transformations.

II. Duplicate records.

III. Data normalization.

IV. Nonstandard formats.掃碼立即搶購

A) I and II

B) only III

C) I, II and IV

D) II and IV

答案:C

解析: Data normalization is a process to better organize data in order to minimize redundancy and dependency, so it is least likely to increase risk. All of the other data issues are likely to increase risk, especially complex data transformations.

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