Regulatory Alerts2021-11-01
Risk Management Directive, 2021
The Bank of Ghana has issued the Risk Management Directive, 2021 to mandate all licensed banks, savings and loans companies, finance houses, and financial holding companies to establish a comprehensive, Board-approved risk management framework. Regulated institutions must define their risk appetite and strategy, implement a designated Chief Risk Officer alongside the Three Lines of Defence model, and conduct regular stress testing while promptly notifying the regulator of material breaches. The directive further requires annual risk management declarations, periodic independent reviews of framework effectiveness, and strict adherence to reporting timelines to ensure prudent oversight aligned with strategic objectives.
Share