PERDARR Implementation Support by Firm C

PERDARR is more than a regulatory obligation. It is a structured approach to risk data aggregation and reporting that pushes financial institutions to rethink how they manage and communicate risks. In an environment where data-driven decision-making is key, PERDARR offers a framework for sustainable and forward-looking risk governance. At Firm C, we help you move from compliance to control and from control to strategic advantage. With our expertise in finance, data and risk, we implement PERDARR in a way that creates clarity, accountability and long-term value.

The goals and scope of PERDARR in risk management

PERDARR stands for Prudent Evaluation of Risks – Dutch Actuarial and Regulatory Requirements. It sets a structured foundation for how financial institutions should manage and report risk data. The main goal of PERDARR is to ensure that risk-related information is complete, consistent and readily available to decision-makers and supervisory authorities. This framework applies particularly to banks and insurers operating under Dutch supervision and is closely aligned with international standards such as BCBS 239.

PERDARR requires institutions to demonstrate that their risk data aggregation and internal reporting frameworks are not only technically sufficient but also embedded in daily operations and strategic decision-making. Its scope covers the entire lifecycle of risk data: from initial identification and collection to aggregation, validation and internal governance reporting. By ensuring that institutions manage risks prudently and transparently, PERDARR strengthens financial stability and supervisory oversight. At Firm C, we support clients in aligning their risk functions with PERDARR requirements in a way that enhances control, accountability and long-term resilience.

Data aggregation under PERDARR: key requirements

Data aggregation is a central pillar of PERDARR. The directive requires financial institutions to be able to generate comprehensive, timely and accurate risk data across all entities, portfolios and risk types. This is not only about having the right IT infrastructure, but also about data governance, traceability and organisational readiness. PERDARR sets out that institutions must ensure that aggregated risk data is reliable enough to support decisions under normal and stressed conditions.

Key requirements include clear data definitions, automated data flows, reconciliation controls and consistent data usage across departments. The goal is to ensure that risk reports are not only fast and accessible, but also trusted by the business. At Firm C, we help clients implement robust data aggregation frameworks that comply with PERDARR standards and enable proactive risk oversight. We bridge the gap between IT, risk and operations to create scalable solutions that withstand regulatory scrutiny and support strategic agility in a fast-changing financial environment.

PERDARR reporting expectations from Dutch regulators

Dutch regulators have set high expectations for PERDARR reporting. Institutions must be able to demonstrate full control over their risk data processes, including the ability to deliver reliable reports within tight timeframes. Reports should be timely, accurate and clearly linked to decision-making processes at senior management and board level. Supervisors expect institutions to prove that reporting processes are not only operationally sound but also embedded in the governance structure of the organisation.

Under PERDARR, institutions must show that they can quickly and confidently answer questions about exposures, risk concentrations and scenario impacts. This means that data lineage, quality controls and internal validation mechanisms must be well established. At Firm C, we assist financial institutions in strengthening their reporting capabilities to meet and exceed PERDARR expectations. From building control frameworks to training teams and refining report structures, we ensure that your organisation is well positioned to respond effectively to regulatory reviews and ongoing supervisory dialogue.

Challenges in PERDARR implementation and how to overcome them

Implementing PERDARR is a complex task that affects multiple layers of a financial institution. One major challenge is the integration of fragmented data systems across business units and subsidiaries. Without a unified data architecture, risk aggregation becomes inconsistent and unreliable. In many cases, institutions also lack clear ownership over data elements, which hinders accountability and timely reporting. PERDARR requires not just systems upgrades, but also strong coordination between IT, risk and governance functions.

Another common hurdle is the underestimation of the effort required to embed PERDARR principles into the daily risk management cycle. Many firms treat it as a compliance project rather than a long-term structural enhancement. At Firm C, we guide organisations through these challenges with a hands-on, practical approach. We help identify process gaps, streamline data flows and create governance models that ensure sustainable compliance. Our experience with PERDARR across the Dutch financial sector allows us to tailor implementation strategies that are both realistic and regulator-ready.

The role of governance, systems and controls in PERDARR

Governance plays a critical role in successful PERDARR implementation. Institutions are expected to demonstrate that risk data aggregation and reporting are fully governed at the executive level. This means that senior management must have clear oversight, defined responsibilities and established processes to ensure that PERDARR requirements are met consistently. Governance is not a formality, but an active mechanism to monitor the reliability, completeness and timeliness of risk information.

Systems and controls are equally important. PERDARR demands integrated IT systems that enable automated data aggregation, validation checks and secure audit trails. Control frameworks must be in place to detect data inconsistencies, trigger alerts and provide remediation pathways. At Firm C, we help financial institutions design governance structures and system environments that fully support PERDARR compliance. From strategic oversight to technical execution, we work with your teams to embed PERDARR principles into every layer of your risk management function not as an add-on, but as a core capability.

FAQ – Frequently Asked Questions about PERDARR

What does PERDARR stand for

PERDARR stands for Prudent Evaluation of Risks – Dutch Actuarial and Regulatory Requirements. It is a regulatory framework introduced by Dutch financial supervisors to ensure that financial institutions manage and report risks in a structured, consistent and transparent manner.

Who needs to comply with PERDARR

PERDARR applies to banks, insurers and other financial institutions operating under Dutch regulatory oversight. These institutions are expected to demonstrate full control over their risk data, aggregation processes and internal reporting capabilities.

What are the main components of PERDARR

PERDARR focuses on three core areas: data aggregation, internal risk reporting and governance. Institutions must be able to collect, validate and report risk data in a timely and accurate way. They must also ensure that governance structures are in place to oversee and monitor risk information consistently.

Why is PERDARR important for financial institutions

PERDARR is important because it ensures that risk management decisions are based on reliable and complete information. It also helps supervisors evaluate the stability and resilience of financial institutions. Compliance with PERDARR is not only about meeting regulatory standards, but also about building a strong internal control environment.

What challenges do institutions face with PERDARR

Common challenges include fragmented IT systems, unclear data ownership, limited automation and insufficient governance oversight. These issues can make it difficult to aggregate data consistently or respond quickly to supervisory requests. Addressing these gaps is essential for successful PERDARR implementation.

How does PERDARR relate to other regulations like BCBS 239 or Basel IV

PERDARR is aligned with international frameworks such as BCBS 239. It shares similar objectives around data quality, risk aggregation and governance. While BCBS 239 is broader in scope, PERDARR focuses specifically on the Dutch regulatory context and adds national expectations on risk control and data transparency.

How can Firm C help with PERDARR implementation

Firm C supports financial institutions with tailored PERDARR implementation strategies. We assess current capabilities, identify compliance gaps and design practical solutions that align with both regulatory expectations and business needs. Our hands-on consultants bring deep expertise in data, governance and risk to every engagement.