FRTB is a significant global industry challenge, but the process to achieve its outcomes can harness value from data that can be applied throughout a bank’s operations.
In March, the deadline for Fundamental Review of the Trading Book (FRTB) compliance was deferred by one year to January 2023. But, given FRTB’s interplay with other global regulations, the need for banks to focus on its data management groundwork has not waned.
In this paper, we identify eight data challenges that banks need to manage in their FRTB transition programmes, each one reinforcing the need for reliable and accurate data. Banks need to strategically plan for and consistently manage data flows with a reliable data quality monitoring system, based on a single, centralised source of data and a consistent data taxonomy.
Tim Versteeg, Managing Director for APAC at NeoXam, helps us understand the clear utilities that standardised and automated data flows can bring to an organisation, even beyond FRTB.