1.3 ERM and GARP Code of Conduct

ERM and GARP Code of Conduct

Question 1
In characterizing various dimensions of a bank’s data, the Basel Committee has suggested several principles to promote strong and effective risk data aggregation capabilities. Which statement correctly describes a recommendation that a bank should follow in accordance with the Basel Committee’s principles for effective risk data aggregation and risk reporting?

A. The integrity principle recommends that data aggregation should be completely automated without any manual intervention.
B. The completeness principle recommends that a financial institution should capture data on its entire universe of material risk exposures.
C. The adaptability principle recommends that a bank should frequently update its risk reporting systems to incorporate changes in best practices.
D. The accuracy principle recommends that the risk data be reconciled with manag