GARP
Benchmarking
Initiative (GBI)

Addressing the need to conduct global systemic risk studies in a
rapidly changing and interconnected marketplace.

Addressing the need to conduct global systemic risk studies in a
rapidly changing and interconnected marketplace.

Hypothetical Exercises

Stress Testing

Quantitative Impact Studies

The problem

The need for regular global financial risk studies presents material challenges. Cross-border issues, legal considerations, data gathering complexities and consistency and speed of analysis, among other things, all affect systemic risk studies. This is an especially difficult proposition if the implementation process has to be reinvented for each study. GBI addresses these issues by providing an independent, non-partisan platform from which to conduct cross-border, regional or other studies in an efficient, secure and accurate way.

GBI rationale

  • Financial service organizations are multinational and markets are cross-border and interconnected, but regulatory and political systems are nation-based, requiring an analytic capability to overcome the challenges presented by this dynamic.

  • Systemic risk issues require analysis of data across borders without regard to jurisdiction or political concerns and to help ensure common understanding(s) of study requirements.

  • GBI works across borders and in direct consultation with all stakeholders, reducing operational risks and producing greater accuracy of results and speed of analysis.

  • A secure data collection and dissemination system and pre-agreed confidentiality protocols allows for multiple studies to be conducted in parallel with participant data anonymity.

  • Having institutional knowledge housed in a centralized data repository and independent analytic entity reduces operational risks and inaccurate results, allows for robust data validation and cost savings.

  • GBI provides financial organizations with the ability to benchmark their risk management processes versus their peers.

Over 30 cross–border studies completed

Over 70 Participating Banks and other industry members

Quantitative and Qualitative Studies