Operational Incidents Watch Issue No. 2

Banking Supervision Department Our Ref : B1/15C B9/81C 25 February 2015 The Chief Executive All Authorized Institutions Dear Sir/Madam, The Hong Kong Monetary Authority published today the enclosed second issue of Operational Incidents Watch. The Operational Incidents Watch is a periodic newsletter to share with the industry the major lessons learnt from selected significant operational incidents that have happened in the banking sector. It aims at facilitating authorized institutions (AIs) and the members of the public in Hong Kong to stay alert and to take appropriate measures to prevent similar incidents from happening to them. In this connection, we expect AIs’ senior management to ensure that their relevant business lines and operational risk management functions will take into account the Operational Incidents Watch to review and enhance where appropriate the relevant risk management controls, including any applicable customer education efforts. If there are any questions on the Operational Incidents Watch, please contact Parry Tang on 2878-1524 or Alex Lee on 2878-1484. Yours faithfully, Brian Lee Acting Executive Director (Banking Supervision) Encl