Delivering Compliance: Challenges and Opportunities

Gerald Redinger

The chapter will examine how to identify the relevant compliance issues originating from BCBS 239, measuring the level of fulfilment of these issues and explaining the value added of BCBS 239 compliance. It will start with a short overview about the motivation and the objectives of BCBS 239, continuing with some observations about the special challenges stemming from its principle-based character and present a “project approach” as a possible solution to these challenges.

The main focus of the chapter is a discussion of the 11 principles of BCBS 239 applicable to banks around four main opportunities delivered by the standard. These will be discussed with a compliance perspective in terms of:

• • content of the principles (ie, what does the standard say about this component?);
• • recommendations and hints relating to the principle (ie, how can the bank interpret each principle for its own purpose/situation?); and
• • questions/indicators/measures that could be used to assess compliance with each principle (ie, how could we define and recognise compliance?).

The chapter will close with a look at each of the four topics, with a short summary of