OPERATIONAL RISK MANAGEMENT – REGULATORY GUIDANCE TO REMAIN RESILIENT

Paper Number :WP47/2024
Publication Date :Aug. 21, 2024

The new and revised guidance note issued on April 30, 2024 on Operational Risk Management and Operational Resilience, is in response to the sound practice principles issued by Basel Committee for Operational Risk Management and Operational Resilience in 2021. These are on account of growing dependency of regulatory entities (RE) on third party service providers, technological advancements and interconnected financial landscape. In order to reduce the impact of these, separate principles for mapping of internal and external interconnections and interdependencies, Information and communication technology (ICT), and disclosure are suggested. This calls for efforts from all the stakeholders to foster a resilient financial environment. The introduction of incident management system, reflecting on “Lesson Learned Exercise and Continuous feedback mechanism”, is an important move to control operational incidences.