Principles for the Sound Management of Operational Risk

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.