Financial Risk Manager Part 1
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The Chief Risk Officer (CRO) at a financial institution is evaluating the company's techniques for managing risk data. To improve the robustness and efficiency of these risk data aggregation capabilities, the Basel Committee has outlined several key principles. Considering the various characteristics of the data, which of the following statements correctly represents a guideline that the bank should follow according to the Basel Committee's principles for effective risk data aggregation and reporting?
A
The integrity principle recommends that data aggregation be completely automated without any manual intervention.
B
The completeness principle recommends that a financial institution capture data on its entire scope of material risk exposures.
C
The adaptability principle recommends that a bank frequently update its risk reporting systems to incorporate changes in best practices.
D
The governance principle recommends that the risk data be reconciled with management's rough approximations of risk exposure prior to aggregating the data.