Basel IV: Adapting to the new data requirements

Article

How should organizations invest in technology like AI to navigate the complex regulatory landscape and the immense challenges posed by the upcoming Basel IV changes - particularly in terms of data requirements and implementation hurdles across risk domains?

Sep 04, 2023

Anh Chu, Product Director, Regnology

Basel IV: Adapting to the new data requirements

The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization

Organizations face significant challenges in implementing Basel IV changes.
Changes span across operational, market, and credit risk domains.
New standardization methodology demands substantial data.
The recently introduced requirement to maintain ten years of operational risk loss event data poses challenges.
Global implementation challenges include variations in interpretations, expectations, and deadlines across jurisdictions, and the need to juggle different calculation methodologies.
AI holds the potential to revolutionize regulatory reporting but requires investments in cloud infrastructure and data management systems.
Future regulatory trends suggest a shift towards detailed, data-driven regulatory programs and increasing demand for granular, standardized data.