Operational Incidents Watch Issue No. 7

Our Ref.: B1/15C B9/81C 12 January 2017 The Chief Executive All Authorized Institutions Dear Sir/Madam, Operational Incidents Watch The Hong Kong Monetary Authority (HKMA) published today the seventh issue of the Operational Incidents Watch (see enclosure). 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 members of the public to stay alert and to take appropriate measures to prevent similar incidents from happening to them. The HKMA expects the senior management of AIs to take steps to ensure that their business lines or operational risk management functions will take into account the incidents described in the Operational Incidents Watch in reviewing and enhancing where necessary their institutions’ risk management controls. If you have any questions about the Operational Incidents Watch, please contact Mr Parry Tang at 2878-1524 or Ms Christie Yee at 2878-1620. Yours faithfully, Raymond Chan Executive Director (Banking Supervision) Encl