Regulatory Alerts2024-05-29
Circular 06/2024 (BA): Minimum Requirements for Risk Management - MaRisk
The German Federal Financial Supervisory Authority (BaFin) issued Circular 06/2024 to establish the Minimum Requirements for Risk Management (MaRisk), providing a flexible framework for credit institutions and financial service providers to ensure adequate risk management and internal controls. The regulation mandates that management bodies assume overall responsibility for risk culture and strategy, requiring institutions to implement robust internal control systems, risk controlling processes, and independent functions such as compliance and internal audit. It further specifies detailed organizational and procedural requirements for credit, trading, and real estate businesses, while emphasizing the integration of ESG risks and the principle of proportionality based on institution size and complexity.