January 18, 2016
BSP CIRCULAR NO. 900-16
SUBJECT : Guidelines on Operational Risk Management
The Monetary Board in its Resolution No. 2115 dated 18 December 2015, approved the following guidelines on operational risk management for BSP supervised financial institutions and amendments in the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI).
SECTION 1. Sections X179/4179Q/4198N/4179T are hereby added to the MORB/MORNBFI to read as follows:
Policy Statement. It is the thrust of the Bangko Sentral ng Pilipinas (BSP) to promote the adoption of effective risk management systems to sustain the safe and sound operations of its supervised financial institutions (BSFIs). Cognizant that operational risk is inherent in all activities, products and services, and is closely tied in with other types of risks (e.g., credit, liquidity and market risks), the BSP is issuing these guidelines to clearly set out its expectations and define the minimum prudential requirements on operational risk management. These guidelines align existing regulations to the extent possible, with international standards 1 and best practices. BSP expects its BSFIs to adopt...
