Review of the Principles for the Sound Management of Operational Risk

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).