Basel Change Control Procedures

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Basel Change Control Procedures

All systems that calculate Basel II exposures should have a relevant change control process in place.

It is imperative that changes to the calculations including the input data are controlled and approved so that changes to the calculation model is with the full knowledge of all staff involved in the production and the presentation of the Basel results to legislators.

There are numerous software tools that are extremely useful to help enforce and lock down change control processes.

Although many Basel II software modeling products such as SAS and Algorithmics are operated by highly skilled and remunerated analysts in the Risk Department it is often possible that these analysts have not been subject to strict change control processes in the past. Therefore, it important that the risk department implements structured change control principles and trains staff in them. Good resources on change controls processes including white papers on change control processes can be found in the main Risk Software Vendors websites.