However, industry is launching initiatives to strengthen its operational capacities by augmenting its systems and processes & adapting information technology solution and outsourcing. Growing wave of mergers and acquisitions leading to conforming business practices have introduced fresh complexity in the operational processes and procedures of the financial institutions.
Besides, introduction of new risk management processes and products and hedging strategies, which although reduce credit and market risk but may create additional operational risks, which are on the rising trends. SBP is encouraging banks to adopt best practices to manage their operational risks and has issued guidelines on the areas of Business Continuity Plan, Internal Control, and IT Security.