RMFI

Bangladesh Bank has issued guidelines covering six core risk areas that every bank must manage. These guidelines collectively form the regulatory framework for risk management in Bangladesh’s banking sector. The six core risk management guidelines issued by Bangladesh Bank are:…

Managing operational risk is a challenging task for banks in Bangladesh. Operational risk can originate from activities at every level — from the Board of Directors down to the desk officer. The key challenges are: Policy and Framework Gaps The…

The operational risk management process involves three key steps: identification and assessment, monitoring and reporting, and control and mitigation. Step 1: Identification and Assessment Effective risk identification considers both internal and external factors. Internal factors include the bank’s structure, nature…

The Three Lines of Defense (3LoD) is a governance framework used by banks to manage operational risk. It establishes three distinct layers of responsibility — ensuring that risks are identified and controlled at the source, independently overseen, and independently verified….

The Basel Framework identifies seven types of operational loss events. Banks must track and report losses under each category: Internal Fraud Losses due to acts intended to defraud, misappropriate property, or circumvent regulations by at least one internal party. Examples…

Operational risk management involves identifying, assessing, monitoring, and controlling risks arising from people, processes, systems, and external events. The four cause factors of operational risk are: Process Risks arising from failures in internal processes and procedures: