March 18, 2008 By Cory Levine, wallstreetandtech.com
Lack of standardization in the reporting process will be a major hurdle in complying with Basel II requirements for financial institutions, according to FRSGlobal. Of the more than 100 financial services and compliance professionals who participated in a recent online survey conducted by the Boston-based provider of risk and regulatory compliance reporting solutions, 41 percent indicated that the standardization of their business reporting processes was insufficient; 17 percent reported that standardization is completely non-existent within their firms. Basel II, which is scheduled to be implemented in 2009, will require firms to report on operational risk at varying levels of complexity. But measuring operational risk within the terms outlined by the rule will require standardization of data and reporting, FRSGlobal says.