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Risk Data Aggregation

Risk Data Aggregation is defining, collecting & processing risk data in accordance with the bank’s risk reporting requirements.

What is Risk Data Aggregation?

Risk Data Aggregation refers to defining, collecting, and processing risk data in accordance with the bank’s risk reporting requirements for the bank to compare its performance to its risk tolerance/appetite.

Breaking down, sorting, and merging data and datasets are all part of the aggregation process.

Example of Risk Data Aggregation:

In the banking environment, there are various levels at which data is stored, such as usually Treasury has a different data system, financing modules are different, and there is usually a separate system for trade finance. Hence, if a Bank has three different approaches for three other areas, risk data aggregation would be required for effective risk management.

Why is Risk Data Aggregation important?

When data is exploited to its most tremendous potential, a business can gain a clear competitive edge by utilising all available information. Risk professionals should be able to save time and effort by storing and retrieving essential data regularly while dramatically boosting decision quality.

Owais Siddiqui
1 min read
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