Study Findings Show Inconsistent and Poor Quality Data Are Major Barriers to Financial Institutions Achieving BCBS 239 Compliance

SINGAPORE and LAS VEGAS, NV--(Marketwired - Oct 13, 2015) - SIBOS and BAI Retail Delivery - Oracle (NYSE: ORCL)

Regulatory reporting requirements in the financial services industry are proliferating. In addition to a growing number of reports, regulators seek more detailed information from financial institutions as well as more frequent submissions and faster turnarounds. Oracle Financial Services and The Center for Financial Professionals conducted a study to understand how financial institutions are faring with expanded regulatory and compliance requirements, including Basel Committee on Banking Supervision 239 (BCBS 239): Principles for Effective Risk Data Aggregation and Risk Reporting.

The study, which surveyed 272 financial risk- and data-management professionals as well as C-level financial services executives, found that banks -- even global systemically important banks (G-SIBs) -- have significant work to do. According to the study, inconsistent data and poor data quality resulting from siloed systems are two of the barriers to achieving BCBS 239 compliance. BCBS 239 seeks, specifically, to strengthen risk-aggregation and risk reporting at banks through appropriate risk-aggregation infrastructure capabilities and reporting practices.

"The path forward is crystal clear. Data governance can no longer be viewed as a one-off exercise for the purpose of compliance. Instead, it must be embraced as a fundamental business principle," said Sultan Khan, Group Vice President, Oracle Financial Services Analytical Applications. "To achieve this paradigm shift, financial institutions require a unified platform that eliminates siloes to create a single source of risk and finance truth and delivers visibility into diverse risk areas to gain a complete and real-time view of a firm's global exposure. Organizational change is also essential. With leading FIs naming a chief data officer and centralized data governance office they can go a long way toward laying a sound foundation for improved data quality, integrity, and transparency for compliance and beyond." 

The study, "Risk and Reward: Why Getting Your Risk Data into Shape Will Yield Business Rewards," revealed significant lingering hurdles that are fundamental to BCBS compliance, including data availability, data quality and collection, as well as consistency across the organization. Specific findings include: