Regulatory Alerts2022-03-09
Risk Management Guidelines for Banks, Finance Companies and Insurance Companies
The Maldives Monetary Authority issued these guidelines to establish minimum risk management standards for banks, finance companies, and insurance companies to enhance financial soundness and sector stability. The document mandates a comprehensive risk management framework encompassing governance, risk culture, and the three-lines-of-defence model to identify, assess, and treat credit, liquidity, market, operational, and insurance risks. It requires active board oversight, defined risk appetite and tolerance levels, and robust internal controls to ensure institutions can effectively monitor and mitigate exposures across all business activities.
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