Regulatory Alerts2011-11-20
Basel Committee Papers of Relevance to Saudi Banks
The Saudi Arabian Monetary Agency directs all domestic banks to integrate two June 2011 Basel Committee publications on operational risk into their management policies and procedures. Banks must retrieve the Operational Risk Supervisory Guidelines for Advanced Risk Measurement Approach and the Principle for Sound Management of Operational Risk from the Bank for International Settlements website. These documents should be distributed to Risk Management, Compliance, and Internal Audit leadership to ensure alignment with current regulatory standards.
$aubi �rabian Jflonetarp �gencp Banking Supervision Dept. �0 November 2011 S!125/80S. f 4£, f From Saudi Arabian Monetary Agency To All Banks Attention Managing Directors, Chief Executive Officers and General Managers Subject Basel Committee Papers of Relevance to Saudi Banks During 2011, the Basel Committee on Banking Supervision has published two documents related to operational risk management. In this regard, Bank Management can specifically benefit from these papers by incorporating the relevant principles and guidance information in their operational risk management and control policies and procedures. SAMA would like Banks to be fully aware of the following Basel Committee Papers issued dur�ng 2011.
- June 2011 - Operational Risk Supervisory Guidelines for Advanced Risk Measurement Approach
- June 2011 - Principle for Sound Management of Operational Risk We suggest that Banks should access these papers from Bank for International Settlements website: (http://www.bis.org). The Banks should distribute these papers to relevant managers in Risk Management, Compliance and Internal Audit functions to keep them abreast of the current developments and practices. �- ;:j � Dr. Abdulrahman AI-Hamidy Vice Governor P. 0. Box 2992 - Riyadh 11169, Saudi Arabia - Tel.: 01-463 3000 - Telex 404390 SJ - Fax 01-466 2119