Over a decade ago, the Basel Committee on Banking Supervision introduced standard number 239 (BCBS 239) with the goal of fortifying banks’ risk data aggregation capabilities and internal risk reporting practices. While adhering to BCBS 239 promises enhanced risk management and decision-making processes, the banking sector faces numerous challenges in implementing its principles.

Challenges Faced by Banks

Many banks continue to operate with risk data residing in disparate silos, spanning subsidiaries, lines of business, and various types of risk. Often, these institutions lack the means to effectively incorporate risk data from subsidiaries, resulting in inaccuracies and incomplete granular risk data. Moreover, an inadequate data architecture, devoid of transparency or lineage, is commonplace. The rigid nature of their infrastructure hinders their capacity to meet evolving requirements. Additionally, substantial gaps in data governance persist, including the absence of comprehensive data dictionaries and uniform data taxonomies, untracked changes, missing reconciliation procedures, unapproved data quality policies, incomplete key quality indicators, and a lack of audit trails.

Overcoming these Barriers

To address these challenges and facilitate BCBS 239 compliance, Orion Governance offers the Enterprise Information Intelligence Graph (EIIG). EIIG is a self-defined data fabric that intelligently extracts metadata from a wide array of technology sources, such as mainframes, NoSQL databases, Python, and Java. With EIIG, banks can dismantle data silos, achieving a federated and centralized perspective on all their data. EIIG automatically constructs data lineage and a data catalog, ensuring end-to-end traceability and simplified data discovery. Metadata analytics, including similarity analysis, serve as powerful tools to eliminate data redundancy. EIIG enhances data quality by actively monitoring and visualizing data quality scores at each stage of the data journey, instilling trust in the data used for reporting.

Leveraging EIIG for BCBS 239 Compliance

Orion Governance comprehends the challenges faced by banks and provides EIIG as a solution to expedite BCBS 239 compliance. Specifically, here’s how EIIG aids in implementing all 11 principles related to overall governance and infrastructure, risk data aggregation capabilities, and risk reporting practices:

  1. Governance: EIIG offers a comprehensive data governance platform to support BCBS initiatives. EIIG’s automated metadata discovery allows banks to assess the health of their data assets, identifying valuable and risky data assets for improved governance and compliance.


  2. Data Architecture: EIIG simplifies banks’ data architecture through a self-defined data fabric, promoting data aggregation, harmonization of data taxonomy, and optimized data placement, reducing redundancy, latency, and inconsistency.


  3. Accuracy and Integrity: EIIG offers a federated view of all data assets in a knowledge graph, maintaining accuracy and integrity. It automates the discovery of authoritative data sources, enhancing data consistency and trust.


  4. Completeness: Supporting over 70 technologies, EIIG establishes comprehensive connectivity, centralizing risk data, regardless of its source and location.


  5. Timeliness: EIIG enables banks to update metadata repositories as needed, ensuring timely and accurate reports.


  6. Adaptability: EIIG allows banks to generate risk data reports as required, with automated impact analysis for enhanced adaptability.


  7. Accuracy: EIIG facilitates reconciliation across platforms and ensures data accuracy and compliance.


  8. Comprehensiveness: EIIG provides automated data transparency for a complete and scalable compliance approach.


  9. Clarity and Usefulness: EIIG automates business views, ensuring clear and meaningful risk data for reporting.


  10. Frequency: Banks can customize the frequency of risk data report generation with EIIG, catering to different user personas for efficient decision-making.


  11. Distribution: EIIG promotes self-service by granting users access to generate, access, and distribute risk reports with robust access control and permission management.


In summary, Orion Governance’s EIIG simplifies BCBS 239 compliance by offering a comprehensive active metadata management platform with robust data governance capabilities. It optimizes data architecture and infrastructure, centralizing risk data from all sources while adhering to best reporting practices mandated by the regulation. Importantly, these achievements are realized without manual intervention, mitigating the human resource constraints at banks, and ensuring the lowest total cost of ownership. Schedule an EIIG demo to learn more.


About the Author: Niu Bai, Ph.D. is the Head of Global Business Development at Orion Governance, Inc. Connect with Niu on LinkedIn.

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