Regulatory Alerts2008-10-28
Bank of Zambia Risk Management Guidelines for Financial Service Providers
The Bank of Zambia issued these guidelines to mandate a risk-based supervisory framework for all regulated financial service providers, requiring them to systematically identify, measure, control, and monitor their risk exposures. The document establishes comprehensive requirements for board and senior management oversight, internal controls, and specific risk management frameworks covering operational, credit, strategic, liquidity, market, legal, and reputational risks. It further stipulates that the central bank will enforce prompt corrective measures, such as capital increases or exposure reductions, whenever institutions fail to adequately manage their risk profiles.
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