Regulatory Alerts2012-11-05
Risk Management Guidelines January 2013
The Central Bank of Kenya has issued these guidelines to outline minimum requirements for risk management systems and frameworks for financial institutions. The guidelines identify critical risk categories, including strategic, credit, liquidity, market, operational, and reputational risk. Institutions are expected to establish a Risk Management Function that supervises overall risk management and reports directly to the board or a committee of the board. The document outlines the responsibilities of the board and senior management in overseeing risk management processes and ensuring compliance with policies and procedures. It also provides guidance on measuring, monitoring, and controlling various types of risk, including credit, liquidity, market, and operational risk. Additionally, the guidelines address information and communication technology (ICT) risk, compliance risk, and country and transfer risk.