IV.3.1 Technological Risk - Asociación de Supervisores Bancarios de las Américas

Basel II Framework

(Anonymous) — Wed, 28 Oct 2015 10:04:38 +0000

This section discusses the key principles of supervisory review, risk management guidance and supervisory transparency and accountability produced by the Committee with respect to banking risks, including guidance relating to, among other things, the treatment of interest rate risk in the banking book, credit risk (stress testing, definition of default, residual risk, and credit concentration risk), operational risk, enhanced cross-border communication and cooperation, and securitisation.

Revised Pillar 3 Disclosure Requirements

(Anonymous) — Thu, 01 Jan 2015 02:14:39 +0000

Market discipline has long been recognised as a key objective of the Basel Committee on Banking Supervision (hereafter the “Committee” or “BCBS”). The provision of meaningful information about common key risk metrics to market participants is a fundamental tenet of a sound banking system. It reduces information asymmetry and helps promote comparability of banks’ risk profiles within and across jurisdictions. Pillar 3 of the Basel framework aims to promote market discipline through regulatory disclosure requirements. These requirements enable market participants to access key information relating to a bank’s regulatory capital and risk exposures in order to increase transparency and confidence about a bank’s exposure to risk and the overall adequacy of its regulatory capital.

Review of the Principles for the Sound Management of Operational Risk

(Anonymous) — Sun, 05 Oct 2014 22:13:01 +0000

In June 2011 the Basel Committee on Banking Supervision published its “Principles for the Sound Management of Operational Risk” (“the Principles”) to provide guidance to banks on the management of operational risk. The eleven principles incorporate the lessons from the financial crisis and the evolution of sound practice for management of operational risk. The Principles cover governance, the risk management environment and the role of disclosure, and address the three lines of defence (business line management, an independent corporate operational risk management function and an independent review).

Principles for Effective Risk Data Aggregation and Risk Reporting

(Anonymous) — Tue, 01 Jan 2013 02:11:34 +0000

One of the most significant lessons learned from the global financial crisis that began in 2007 was that banks’ information technology (IT) and data architectures were inadequate to support the broad management of financial risks. Many banks lacked the ability to aggregate risk exposures and identify concentrations quickly and accurately at the bank group level, across business lines and between legal entities. Some banks were unable to manage their risks properly because of weak risk data aggregation capabilities and risk reporting practices. This had severe consequences to the banks themselves and to the stability of the financial system as a whole.

Supervisory Guidelines for the Advanced Measurement Approaches

(Anonymous) — Wed, 01 Jun 2011 04:09:39 +0000

The Basel Committee’s Standards Implementation Group, through its Operational Risk Subgroup (SIGOR), has focused on the practical challenges associated with the development, implementation and maintenance of an operational risk (OR) management and measurement framework that meets the requirements of Basel II,1 particularly as they relate to the Advanced Measurement Approaches (AMA). The SIGOR’s mandate includes identifying and participating in resolving the practical challenges associated with the successful development, implementation and maintenance of an AMA framework.

Principles for the Sound Management of Operational Risk

(Anonymous) — Wed, 01 Jun 2011 04:07:44 +0000

In the Sound Practices for the Management and Supervision of Operational Risk (Sound Practices), published in February 2003, the Basel Committee on Banking Supervision (Committee) articulated a framework of principles for the industry and supervisors. Subsequently, in the 2006 International Convergence of Capital Measurement and Capital Standards: A Revised Framework - Comprehensive Version (commonly referred to as “Basel II”), the Committee anticipated that industry sound practice would continue to evolve.

Enhancements to the Basel II Framework

(Anonymous) — Tue, 30 Jun 2009 22:06:19 +0000

The proposals for enhancing the Basel II framework in the area of securitisation and more specifically for dealing with resecuritisations have been finalised. Banks are expected to comply with the revised requirements by 31 December 2010. These enhancements are intended to strengthen the framework and respond to lessons learned from the financial crisis. The following is a summary of the changes that the Committee is making to Pillar 1.

Risk Management Principles for Electronic Banking

(Anonymous) — Mon, 30 Jun 2003 16:03:26 +0000

Continuing technological innovation and competition among existing banking organisations and new entrants have allowed for a much wider array of banking products and services to become accessible and delivered to retail and wholesale customers through an electronic distribution channel collectively referred to as e-banking. However, the rapid development of e-banking capabilities carries risks as well as benefits.