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From Saudi Arabian Monetary Agency

To All Banks

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^{July 2012}

Attention : Managing Directors, Chief Executive Officers and General Managers

Subject Basie Committee for Banking Supervision (BCBS) Consultative Document entitled "Principles for Effective Risk Data Aggregation and Risk Reporting"

The BCBS has issued a consultative document for comments entitled

"Principles for Effective Risk Data Aggregation and Risk Reporting". All banks are requested to study this document for comments and in this regard, ensure as a minimum that the paper is circulated to all relevant Senior Staff including CFOs, CRO's, Basel Ill Project Leaders, Compliance Officers, Head of Technology Department, etc.

One of the significant lessons learnt from the global financial crisis was that banks' information technology (IT) and data architectures were inadequate to support the broad management of financial risks. Many banks lacked the ability to aggregate risk exposures and concentrations effectively at the bank group level, across business lines and between legal entities.

Consequently, banks were unable to manage their risks because of their weak risk data aggregation capabilities. Bank can obtain this document from the BIS website: www.bis.org.

All banks are expected to provide their comments no later than by 1 September 2012.

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Dr. Abdulrahman Al Kalaf Deputy Governor for Technical Affairs

P. 0. Box 2992 - Riyadh 11169, Saudi Arabia -Tel.: 01-463 3000-Telex 404390 SJ - Fax 01-466 2119