Financial Risk Manager Part 1

Explanation

The correct answer is D. Data Architecture and Infrastructure.

Why D is Correct:

Vijay Kumar's statements align with the second principle of risk data aggregation - 'Data Architecture and Infrastructure'. This principle requires that:

• Banks should dedicate human and financial resources to improving risk data aggregation, especially during stressful times
• Risk data aggregation and reporting should be incorporated into the bank's planning processes and be subject to business impact analysis
• Banks must establish integrated data classifications and architecture across the banking group

Kumar's specific comments about:

• The bank's commitment to enhancing risk data aggregation
• Considering data aggregation and reporting as integral parts of the bank's planning processes
• Establishment of various data models for robust automated reconciliation measures

All indicate adherence to the 'Data Architecture and Infrastructure' principle.

Why Other Options are Incorrect:

• A. Adaptability: Refers to the ability of a bank's risk data aggregation capabilities to change in response to varying business needs, which is not specifically mentioned in Kumar's statements.
• B. Comprehensiveness: Pertains to the inclusion of all material risk data into the scope of aggregation, but Kumar does not explicitly mention this aspect.
• C. Distribution: Refers to the dissemination of risk management reports at all relevant levels within a bank, which isn't directly addressed by Kumar's comments.