Regulatory Alerts2013-01-01
Recommendation M on Operational Risk Management in Banks
The Financial Supervision Commission issued Recommendation M to establish comprehensive operational risk management standards for banks, replacing the 2004 version with updated guidelines aligned with Basel Committee and EU CRD directives. The document mandates that bank management boards develop and implement written strategies, while supervisory boards must approve these strategies and oversee their execution through defined governance structures. It further requires banks to adopt proportional risk identification, assessment, mitigation, and reporting mechanisms tailored to their specific size, complexity, and risk profiles.
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