Regulatory Alerts2023-07-28
Enterprise Risk Management Guidance Notes
The Central Bank of The Bahamas mandates that all supervised financial institutions implement a comprehensive Enterprise Risk Management framework aligned with Basel principles and the institution’s approved risk appetite. The guidance establishes a structured three-lines-of-defence governance model, requiring continuous risk identification, measurement, and mitigation through integrated management information systems and clearly defined board oversight. By enforcing strict risk limits, contingency planning, and transparent reporting, the framework ensures licensed banks and credit unions maintain adequate capital, proactively address emerging exposures, and uphold overall financial soundness.
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