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 which the bank should follow in accordance with the given principle?
AThe integrity principle recommends that data aggregation should be completely automated without any manual intervention.
BThe completeness principle recommends that a financial institution should capture data on its entire universe of material risk exposures.
CThe adaptability principle recommends that a bank should frequently update its risk reporting systems to incorporate changes in best practices.
DThe accuracy principle recommends that the risk data be reconciled with management’s estimates of risk exposure prior to aggregation.
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