Regulatory Alerts2025-02-18
Regulation on Operational Risk Management in Banks
The Central Bank of the Republic of Azerbaijan issued Resolution No. 04/1 to establish minimum requirements for operational risk management across all banks and foreign bank branches. The regulation mandates a comprehensive risk management system integrating defined policies, assessment tools like RCSA and key indicators, continuous monitoring via management information systems, and robust mitigation strategies for outsourcing and ICT risks. It further requires institutions to maintain a historical incident database for empirical forecasting, develop stress-tested business continuity plans to ensure operational resilience during disruptions, and submit regular risk reports to supervisory and management boards.
Share