BAKU, Azerbaijan, February 13. The Central Bank of Azerbaijan (CBA) has developed and approved the "Regulation on the Management of Operational risks in banks" based on progressive international experience and standards, Trend reports via the CBA.
According to the CBA, the main purpose of the regulation is to support the prevention of significant financial losses by increasing the sustainability of operations in banks and ensuring a more agile response to events in the operational environment.
The newly adopted regulatory framework particularly sets requirements for the operational risk management system in banks, identification, assessment, and monitoring of operational risks, internal and supervisory reporting, as well as the formation of a database on operational risk events.
The application of this framework will expand the existing database of operational risk events in banks, allow for more accurate calculation of losses faced by banks as a result of operational risk incidents, and enable banks to adopt more advanced approaches to capital requirements for operational risks in the future.
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