Regulatory Alerts2024-01-16 | Circular 05/2023 (BA) - Minimum Requirements for Risk Management (MaRisk)Circular 05/2023 (BA) - Annotated Minimum Requirements for Risk Management (MaRisk)
The German Federal Financial Supervisory Authority (BaFin) issued Circular 05/2023 to establish a comprehensive framework for institutional risk management under the German Banking Act. The annotated text mandates robust internal control systems, group-level risk oversight, and standardized outsourcing practices to maintain adequate capital. It further prescribes sector-specific operational procedures for credit, trading, and real estate businesses alongside rigorous stress testing, data aggregation, and contingency planning requirements.
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