Narasimha Murthy’s Post

In the ever-evolving landscape of operational risk management, staying updated is key! Recently, the RBI released a significant update on operational risk management and resilience. A webinar by Deepak Sai & Shashank Shekhar from The Digital Fifth provided valuable insights into this guidance note, focusing on governance, risk culture, and adaptability. Keeping pace with these changes is crucial for sharpening our risk management strategies. #OperationalRiskManagement #RiskResilience #RBIGuidance #RiskManagementStrategy

The Reserve Bank of India has issued "Guidance Note on Operational Risk Management and Operational Resilience" on 30-Apr-2024. The guidance provides amazing insights into operational risk management. Additionally, there are multiple charts and diagrams in the document, which explain nuisances of operational risk in a very simple manner. The chart attached below provides details of wide spectrum of risks (risk universe) which could be existing in third-party relationships.

Published in June 2024, this guidance note’s stresses on effective operational risk management for all financial sector regulated entities (REs). It analyzes the new requirements as disseminated by the Reserve Bank of India on April 30, 2024 demonstrating how interruptions to operations may affect consumers, jeopardize the sustainability of a regulated entity and upset financial stability. The many operational risks that REs encounter are described in the beginning, including those pertaining to people, process, technology and external events. Finally, it highlights how proactive identification, evaluation and management of these risks by REs is essential for operational resilience. #GRC #operationalrisk #operationalresilience #resilience #riskmanagement #KRI #businesscontinuity #disruption #governance #policy #Oprisk #sustainability #financialstability #resources #management #knowledge #futurerisk #emergingrisk #agility #

Rajesh’s journey highlights a key lesson: risk is inevitable in banking, but manageable. 🏦 Early threat identification, impact assessment, and timely actions help banks navigate uncertainties. Bharat Bank’s story serves as a beacon, showing that proper risk management ensures long-term stability and success. The right approach to risk management can make all the difference, even in uncertain times. 💡

𝐉𝐮𝐬𝐭 𝐢𝐧 𝐓𝐢𝐦𝐞 "𝐏𝐫𝐢𝐧𝐜𝐢𝐩𝐥𝐞𝐬 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐒𝐨𝐮𝐧𝐝 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐨𝐟 𝐓𝐡𝐢𝐫𝐝-𝐏𝐚𝐫𝐭𝐲 𝐑𝐢𝐬𝐤" Click here to read more: https://lnkd.in/dYPmcgDV Banks have long relied on third-party service provider (TPSP) arrangements for a variety of reasons. The “Principles for Sound Third-Party Risk Management” is the consultative (end of consultation by 9th October 2024) document published by the Basel Committee on Banking Supervision (BCBS) provides a common guidance for effectively managing the #risk associated with third-party service. The consultative document sets out 12 principles aimed at improving #banks’ operational resilience, reducing operational fragmentation, and promoting international collaboration. Authors: Dario E., Pierpaolo Carrozzino, Bianca Ghilardi and Tommaso Travenzoli #Governance #RiskManagement #ThirdPartyRisk #BCBS

Third-Party Risk Management to improve banks’ operational resilience and to reduce operational fragmentation #ThirdPartyRiskManagement

Informative and considering the topic covered, it is precise as well.

In light of RBI Governor Shaktikanta Das's call for strengthened governance, risk management, and compliance in banks, the role of consultancy and advisory services is more crucial than ever. Prime Equation is well-positioned to provide the expertise and strategic guidance needed to enhance governance frameworks, implement robust risk management practices, and ensure compliance with regulatory requirements. By leveraging our specialized knowledge, banks can improve their resilience, manage risks more effectively, and stay ahead of regulatory changes, thereby fostering a more stable and secure financial environment. For more details, read the full article here : https://lnkd.in/gnbMbjrj

A well-defined Model Risk Management framework ensures timely risk identification, accurate assessment of severity of risk, uniformity of internal model development and validation as well as regulatory compliance. Here's a quick read that summaries the key points in the recently published PRA guidelines on MRM. Happy reading! #riskmanagement #creditrisk #regulatorycompliance #bankofengland #regulatorymodels #riskconsulting #modeldevelopment #modelvalidation

A robust model risk management framework is critical for banks to ensure accurate risk assessment, regulatory compliance, and informed decision-making. It safeguards against erroneous predictions, enhances transparency, and maintains trust with stakeholders. Effective management mitigates financial losses and preserves the integrity of the institution's operations. The Bank of England's Model Risk Management Guidelines outline best practices for banks to effectively manage the risks associated with their models. They emphasize rigorous validation processes, ongoing monitoring, clear documentation, and governance structures. These guidelines aim to ensure the reliability of models, promote transparency, and enhance overall risk management within financial institutions. #riskmanagement #risk #analytics #bankingindustry #banking #BankofEngland #ECB #PRA