Regulatory Alerts2024-07-09
Prudential Standard No. 3 - Operational Risk Management (For Banks Only)
The Central Bank of Solomon Islands issued Prudential Standard No. 3 to establish minimum requirements for the management of operational risk by all banks licensed under the Financial Institutions Act 1998. The standard mandates that bank Boards of Directors retain ultimate responsibility for establishing a robust operational risk management framework, including an approved risk appetite statement and comprehensive governance structures. Senior management is required to implement these frameworks through specific policies, internal controls, and continuous monitoring to ensure compliance and mitigate risks arising from failed processes, people, systems, or external events.
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