Explanation:
An example of ineffective risk reporting would be improperly established data quality rules, such as lacking minimum standards for risk reporting.
(Book 1, Module 7.1, LO 7.c)
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Question 15
A supervisor at Country Bank is examining the Basel Committee's principles for effective risk data aggregation and reporting. Which of the following statements would be incorrect regarding the principle of risk reporting accuracy? The bank should:
A
define the processes used to create risk reports.
B
create error reports that identify, report, and explain weaknesses or errors in the data.
C
include descriptions of mathematical and logical relationships in the data that should be verified.
D
remove any minimum standards for risk reporting to improve the timeliness of risk approximations.
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