The Reserve Bank of India has published ‘Guidance Note on Operational Risk Management and Operational Resilience’. This aligns the Bank’s regulatory guidance with the Basel Committee on Banking Supervision (BCBS) Principles ‘Revisions to the Principles for the Sound Management of Operational Risk’ and ‘Principles for Operational Resilience’, while adopting global best practices.
The guidance aims to help regulated entities to:
- Promote and further improve the effectiveness of operational risk management, and
- Enhance operational resilience given the interconnections and interdependencies within the financial system that result from the complex and dynamic environment in which the regulated entities operate.
Although the exact approach may vary, the Guidance Note provides overarching guidance for improving and further strengthening an operational risk management framework (ORMF).
