Regulatory Alerts2023-02-26
Risk Management Directive for Banking Corporations
The Supervisor of Banks mandates comprehensive risk management principles and governance structures for all banking corporations to ensure long-term financial stability. The directive requires institutions to establish a firm-wide risk management framework anchored by a board-approved risk appetite statement and a three-lines-of-defense model. It further obligates banks to appoint an independent Chief Risk Officer, implement robust risk identification and stress testing methodologies, and maintain continuous monitoring and reporting mechanisms aligned with strategic objectives.
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