CBB requires all banks to conduct and submit their gap assessment and corresponding action plans, for effective implementation of the new regulation which is aligned to Basel’s operational risk principles.
Around 80 senior officials from the financial services sector in the Kingdom, recently attended a seminar organized by KPMG Bahrain to discuss the revised module on Operational Risk Management published by the Central Bank of Bahrain (CBB) and, its impact on the banking industry. As part of the roll out, CBB requires all banks to conduct and submit their gap assessment and corresponding action plans, for effective implementation of the new regulation which is aligned to Basel’s operational risk principles. The event helped to raise awareness of best practices in operational risk management in the banking sector.
Jeyapriya Partiban, Partner Advisory – KPMG Bahrain, welcomed the attendees and emphasized the need to be adequately prepared for sudden and unexpected disruptions such as the current threat faced by individuals and organizations, Covid-19. She emphasized the need for a strong risk culture to be embedded within organizations to ensure their ability to respond effectively and promptly, to present and emerging risks.
Mr. Khalid Hamad, Executive Director of Banking Supervision at the CBB, was the special guest delivering the keynote address. He referred to the importance of the new regulation which is aimed at addressing negligence and internal control failures within the banking sector as well as the Regulator’s expectation for banks to observe ethical practices in the conduct of their business. He stressed that the banks must observe the new regulations and develop and maintain effective operational risk management structures in their banks supported by proper resources and systems. Mr. Hamad commented that unlike other risk elements such as credit, operational risk affects every function in a bank and further stressed that quality data management process is vital for executing an effective operational risk framework.
The event featured presentations from KPMG speakers: Steve Punch, Head of Financial Risk Management at KPMG United Arab Emirates and Benson Wakaba, Associate Director Advisory at KPMG Bahrain. They focused on exploring the implementation challenges that banks might face during the implementation phase, practices around the region and options for addressing these challenges.
The event was held on Tuesday, 25 February 2020, at the Downtown Rotana hotel in Manama. For more information about KPMG Bahrain’s events, please contact Khalid Seyadi, marketing officer at KPMG Bahrain, on email@example.com.
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