The risk management principles in this chapter reinforce how banks should manage and mitigate their risks that are identified through the Pillar 2 process.

Version effective as of 15 Dec 2019

First version in the format of the consolidated framework.

Introduction

30.1 Sound risk management processes are necessary to support supervisory and market participants' confidence in banks' assessments of their risk profiles and internal capital adequacy assessments. These processes take on particular importance in light of the identification, measurement and aggregation challenges arising from increasingly complex on- and off-balance sheet exposures.