BIS: Revisions to the principles for the sound management of operational risk
The operational risk management principles were first introduced by the Basel Committee in 2003, being reviewed later on, in 2011, in order to reflect the impact of the financial crisis.
A few years later, BIS conducted a review of the implementation of the principles which reflected that several principles have not been adequately implemented and that the principles did not sufficiently capture certain important sources of operational risk.
Now, the Basel Committee is proposing a limited number of updates, in order to align the principles to the recently finalized Basel III operational risk framework, to update the guidance where needed in the areas of change management and information and communication technologies, as well as to enhance the overall clarity of the principles.
The Basel Committee welcomes comments to any elements of the present paper by November 6, 2020.