Regulatory Alerts2019-06-24
Guidelines for the Management of Operational Risk
The Central Bank of The Bahamas requires all licensed banks and trust companies to establish a comprehensive operational risk management framework that addresses losses from failed processes, personnel, systems, and external events. Licensees must implement a governance structure featuring three lines of defense, clear board and senior management oversight, defined risk appetite limits, and integrated assessment tools such as loss data collection, self-assessments, and key risk indicators. The framework must be proportionate to each institution’s size, complexity, and risk profile, with continuous monitoring, independent internal audit review, and periodic policy updates to ensure robust control and regulatory compliance.
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