Senior management should seriously investigate the findings of audit to set up a risk culture in the bank. The next principles focus on Risk management environment, it outlines the bank’s approach to the identification, assessment, monitoring, control and mitigation of risk. Banks need to use various tools for proactive operational risk management.
These tools include audit findings, analysis of internal and external loss data, risk control and self assessments, key risk indicators, scenario analysis, comparative analysis etc. I am pleased to know that lively discussions on these tools will follow in the coming sessions. SBP is cognizant of its responsibilities with regard to sound operational risk management frameworks in banks.