Risk Management


Principle 15 of the Basel Core Principles for Effective Banking Supervision defines the risk management process as the establishment of appropriate and comprehensive risk management policies and procedures commensurate with the bank’s risk profile and risk appetite, in order to identify, measure, evaluate, monitor, report and control all material risks, and to assess the overall capital and liquidity adequacy in relation to the risk profile and appetite.  The risk management policies and procedures should be well documented, and be reviewed regularly to reflect changes in the bank’s risk profile.

The risk management function is expected to cover all material risks, have sufficient resources, independence, authority and access to the board of directors,  be clearly segregated from any risk-taking function within the bank, and be overseen by a Chief Risk Officer.

 

Basel and FSB References
Title Date of Issue
Sound Capital Planning Process: Fundamental Elements  23/01/2014
Principles for an effective Risk Appetite Framework (Financial Stability Board)  18/11/2013
Principles for Effective Risk Data Aggregation and Risk Reporting  09/01/2013
Principles for the Sound Management of Operational Risk  30/06/2011
Principles for sound stress testing practices and supervision  20/05/2009
Principles for Sound Liquidity Risk Management and Supervision  25/09/2008
Liquidity Risk: Management and Supervisory Challenges  21/02/2008
Principles for the management and supervision of interest rate risk  14/07/2004

 

BDL & BCCL Related Circulars
BDL Basic Circulars BCCL Circulars Banks Financial Institutions
BDL Basic Circular 77 
BDL Basic Circular 81 
BDL Basic Circular 104 
BDL Basic Circular 118 
BDL Basic Circular 119 
BCCL Circular No. 242 
BCCL Circular No. 250 
BCCL Circular No. 252 
BCCL Circular No. 256 
BCCL Circular No. 257 
BCCL Circular No. 262
BCCL Circular No. 275 
BCCL Circular No. 283
Memo 2/2010