Risk compliance and master data management in banking - A novel BCBS 239 compliance action-plan proposal

Area of Science:

• Business Management
• Information Systems
• Financial Regulation

Background:

• Master data management (MDM) is critical for business success in competitive global markets.
• The banking sector requires robust MDM and data governance for positive outcomes.
• Effective risk data management is essential for banks due to regulatory requirements like BCBS 239.

Purpose of the Study:

• To propose a novel, six-phase action plan for banks to achieve BCBS 239 compliance.
• To ensure efficient and effective risk data management and reporting within the banking sector.
• To address the technical and functional complexities of implementing MDM and data governance.

Main Methods:

• A Design Science Research (DSR) methodology was employed.
• The research merged banking and IS expertise with theoretical knowledge on MDM and BCBS 239.
• A continuous focus was maintained on implementation complexities and regulatory compliance.

Main Results:

• A novel, six-phase action plan for BCBS 239 compliance was developed.
• The plan facilitates efficient and effective risk data management and reporting.
• The research addresses the intricate technical and functional challenges in MDM implementation.

Conclusions:

• The proposed action plan enables banks to meet BCBS 239 regulatory demands.
• Successful implementation leads to improved risk data management and reporting capabilities.
• This research provides a practical framework for enhancing data governance in financial institutions.