Regulatory Alerts2024-06-18
Prudential Standard No. 2 - Risk Management (For Banks Only)
The Central Bank of Solomon Islands issued Prudential Standard No. 2 to mandate that all banks operating in the jurisdiction establish and maintain a robust risk management framework. The regulation requires banks to implement comprehensive systems for identifying, measuring, and mitigating material risks while ensuring the Board of Directors approves key documents such as the risk appetite statement and risk management strategy. Compliance is enforced through mandatory supervisory reporting and corrective measures for unsound practices, with specific provisions addressing group risk management and the independence of risk functions.
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