Executive summary

The European Central Bank (ECB) has published its final guide on effective risk data aggregation and risk reporting (RDARR).

The guide, published on May 3, 2024, outlines the prerequisites for banks to effectively manage and aggregate risk-related data and reinforces supervisory expectations based on Basel Committee on Banking Supervision (BCBS) principles, especially BCBS 239. It, however, does not replace the BCBS 239 guidelines.

The regulator emphasises governance and quality of risk data as a supervisory priority.

From the perspective of RDARR, the guide describes the practices, which, in ECB's view, are necessary to identify, manage, monitor, and report the risks banks are exposed to.

The guide focuses on the main deficiencies identified by supervisors, sharing industry best practices and streamlining supervisory activities based on the preconditions deemed essential for enhancing governance and RDARR capabilities of banks.