How Dagster Cloud Supports BCBS 239 Compliance

Basel Committee on Banking Supervision's Standard Number 239, commonly called BCBS 239, focuses on the principles for effective risk data aggregation and reporting. It was established in response to the global financial crisis of 2007-2008, which revealed weaknesses in banks' ability to aggregate risk data and produce timely, accurate, and comprehensive risk reports.

The scope of BCBS 239 can be summarized as follows:

Risk Data Aggregation: BCBS 239 emphasizes the Risk Reporting: The standard also addresses the need for effective risk reporting mechanisms within banks. It outlines principles for the design and implementation of reporting frameworks, including reports' frequency, format, and content. The goal is to give senior staff and regulators timely access to relevant risk information to support oversight and decision-making.

Governance and Controls: BCBS 239 emphasizes the importance of strong governance and internal controls surrounding risk data aggregation and reporting processes. This includes clear accountability, resourcing, and independent validation of data and reporting systems.

Compliance and Implementation: The standard is not just about setting principles but also about ensuring compliance and effective implementation. Banks are expected to assess their current practices against the principles outlined in BCBS 239 and take necessary steps to address any gaps or deficiencies. Regulators play a crucial role in monitoring banks' compliance with the standard and may impose significant penalties for non-compliance.

Overall, the scope of BCBS 239 is broad and encompasses various aspects of risk data aggregation and reporting within banks. The aims of BCBS 239 are to push banks to strengthen their risk management practices and enhance the overall resilience of the financial system.

In terms of geographic scope, BCBS 239 applies to banks and financial institutions across the globe, regardless of their location or jurisdiction.

BCBS 239 and Data Engineering

Data engineering teams in large banks play a critical role in implementing and maintaining the data management systems necessary to comply with BCBS 239. By considering the eight factors outlined below, data engineering teams can effectively meet the demands of BCBS 239 and contribute to the bank’s overall success of risk data aggregation and reporting initiatives.

Dagster is designed to help data engineering teams build and maintain robust data management systems, and it offers several features that can support compliance with regulations like BCBS 239.

In addition to the above, Dagster Cloud provides features for sharing reports on data asset metadata with non-technical users, which can be used to facilitate self-service by the auditing or risk-management teams.

It's important to note that while Dagster provides tools and features that can support compliance with BCBS 239, the actual compliance will depend on how these tools are implemented within your organization. Dagster can be a part of a larger compliance strategy, but it is not a one-stop solution for regulatory compliance. Compliance with BCBS 239 will require a combination of the appropriate technology, processes, and organizational policies.

In summary, Dagster provides a solid framework and set of tools that can help data engineering teams at large banks build data platforms that align with the principles of BCBS 239. It offers capabilities for ensuring data quality, traceability, governance, and documentation, as well as supporting robust data aggregation and change management processes. However, it's important to integrate Dagster effectively with your existing systems and processes to achieve full compliance with regulatory requirements.

If you would like to discuss how Dagster Labs can support your Data Engineering team’s goals related to BCBS 239, please get in touch.