Regulatory Alerts2012-05-29
Operational Risk Management
The Supervisor of Banks issues this directive to establish rules for the sound management of operational risk in all banking corporations and credit card companies. It mandates that boards of directors and senior management implement a comprehensive risk management framework, define risk appetite, and maintain a strong control environment. The document further requires the adoption of a three-lines-of-defense governance structure, regular risk assessments, and robust reporting mechanisms to identify, measure, and mitigate operational losses.
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