Regulatory Alerts2022-05-05
Prudential Standard for the Management of Operational Risk
The Eastern Caribbean Central Bank issued this Prudential Standard to establish minimum operational risk management requirements for all licensed financial institutions. The regulation mandates the development of a comprehensive risk framework encompassing board and senior management oversight, a three-lines-of-defence model, and continuous risk identification, assessment, monitoring, and mitigation. Institutions must tailor their governance structures, risk appetite statements, business continuity plans, and disclosure practices to their specific size, complexity, and operational profile while ensuring robust internal audit verification.
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