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The Reserve Bank of India (RBI) has released a new Guidance Note on Operational Risk Management and Operational Resilience, aimed at strengthening banks’ and financial institutions’ systems for identifying, managing, and mitigating operational risks.
The Guidance Note aligns RBI’s regulatory approach with the Basel Committee on Banking Supervision (BCBS) Principles, including the Revisions to the Principles for the Sound Management of Operational Risk and the Principles for Operational Resilience, both issued in March 2021. It incorporates global best practices, particularly in the area of operational resilience.
[RBI]
The frameworks, procedures, and tools outlined in the Guidance Note are indicative in nature and should be read alongside existing RBI instructions. In case of any inconsistency, the relevant RBI instructions will prevail.
This Guidance Note replaces the earlier Guidance Note on Management of Operational Risk dated October 14, 2005, reflecting RBI’s efforts to modernize operational risk management practices in the Indian banking sector.