Regulatory Alerts2020-02-26 | NRP-20Added · Updated
Technical Standards for the Integral Risk Management of Financial Entities
The Committee of Standards of the Central Reserve Bank of El Salvador issued these standards to establish minimum provisions for the integral risk management of financial entities, including banks, insurance companies, and payment system operators. The document mandates the implementation of a documented risk management process covering identification, measurement, control, and monitoring of credit, market, liquidity, operational, reputational, and technical risks. It requires entities to establish specific organizational structures, including a Risk Committee and an independent Risk Unit, with defined responsibilities for the Board of Directors and Senior Management. Approved on February 26, 2020, with validity starting April 1, 2020, the rules oblige entities to submit approved risk policies to the Superintendence within ten business days and update them at least every two years.