Basel Committee on Banking Supervision (BCBS) published a consultative document titled Principles for the Sound Management of Third-Party Risk on July 9, 2024 (https://www.bis.org/bcbs/publ/d577.htm). While the Principles are primarily aimed at large banks, smaller banks can also benefit from adopting them. Additionally, other financial institutions may find these principles valuable
In the complex world of contemporary finance, where new digital innovations occur at a dizzying rate and new cyber dangers appear at every turn, the Digital Operational Resilience Act (DORA) of the European Union serves as a beacon to guide the financial sector across these treacherous waters. Financial institutions may
Due to continuous digital advancements, the financial sector is seeing significant hurdles in handling and reducing information and communication technology (ICT) risks. The Digital Operational Resilience Act (DORA) by the European Union aims to strengthen the digital infrastructure of financial institutions. Articles 5-16 of DORA offer a detailed plan for
The Basel Committee on Banking Supervision defines operational risk as the risk of loss resulting from inadequate or failed internal processes, systems, and people. Operational risk also encompasses the risk of loss arising from external events, including but not limited to natural disasters, cyber incidents, and other unforeseen events beyond
Many financial organizations still rely on spreadsheets to manage their operational risk data. While spreadsheet is a powerful and versatile tool, it has some limitations and drawbacks that can compromise the quality and accuracy of risk analysis and reporting. In this blog post, we will discuss why financial organizations should
Introduction During last twelve to twenty four months we have all experienced extraordinary uncertainty primarily due to natural calamity, COVID-19 pandemic, unstable global economy, political differences leading to war scenario and others. We have even witnessed that large well run fortune 500 companies have failed the test during this period
Introduction Events of recent years like COVID-19, cyber-attacks, flood and storms etc. has reinforced the importance of managing and responding to operational risks. To ensure that regulated entities are well placed to manage operational risk and respond to business disruptions when they inevitably occur, APRA (Australian Prudential Regulation Authority) is
Businesses across the globe have, in the last couple of years, seen exceptional uncertainty due to political tensions, economic turmoil, COVID-19 pandemic and others. Markets today have put additional pressure on risk officers to safeguard the firm due to extreme conditions like changing consumer preferences, technology advancements, regulatory changes, competitive
Introduction Risk Management Process is a methodology by which risks are formally identified, measured and treated to ensure that risk is avoided, transferred or mitigated. As part of the process number of actions and mitigations are carried out to reduce the likelihood of occurrence and the impact severity of the
Introduction Risk and Control Self Assessment process is a widely accepted methodology used by banks, financial companies, insurance companies and others to identify and assess the operational risk. Even though it’s popular, only few firms have been able to get the benefit of the same, as the process is cumbersome.