Basel Accord

The Basel Accords (there are three as of this writing) are global banking supervision Accords (recommendations on banking regulations).

Prior to the banking crisis of 2008 Basel II (the second accord) was difficult to enforce (although such enforcement would have gone a long way to avoiding the crisis as Basel places requirements on bank to maintain capital allocation sufficient to protect against risk). Basel III, introduced after the 2008 crisis, has proven to be easier to implement.

Basel is relevant to ITSLM insofar as Basel demands increased accountability and monitoring of IT systems involved in financial management and transactions of banks. In other words, ITSLM helps to verify that IT systems provide accurate, timely and relevant information to support Basel compliance. Specifically, maintaining data quality sufficient for compliance will be a significant challenge.