{
  "node_id": "bcbs-principles-sound-management-operational-risk",
  "title": "Principles for the Sound Management of Operational Risk",
  "domain": "Banking & Global Finance",
  "version": "1.0.0",
  "last_updated": "2011-06-01",
  "bluf": "This document details eleven principles of sound operational risk management covering governance, the risk management environment, and the role of disclosure. It replaces the 2003 Sound Practices for the Management and Supervision of Operational Risk, incorporating the evolution of sound practice and enhanced operational risk management practices now in use by the industry. The principles are relevant to all banks, which are expected to take account of the nature, size, complexity, and risk profile of their activities during implementation. Supervisors will evaluate a bank's policies, processes, and systems related to operational risk as part of their assessment of the bank's framework.\n\nThe core obligation is for banks to develop, implement, and maintain an operational risk management framework that is fully integrated into the bank’s overall risk management processes. This framework should be founded on a strong risk management culture led by the board of directors and senior management. It must be comprehensively documented in board-approved policies and include clear definitions and governance structures. A common industry practice for sound governance relies on three lines of defence: business line management, an independent corporate operational risk management function, and an independent review. The framework must also address business resiliency and continuity to ensure the bank can operate on an ongoing basis and limit losses in the event of severe business disruption.",
  "paywall": {
    "status": "LOCKED",
    "unlock_cost_usd": "0.01",
    "skyfire_id": "41779894-ece2-4163-9761-b3b1b76e19b0"
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  "crosswalks": {
    "_available_keys": [
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    "_note": "Full crosswalk values included in vault response"
  },
  "dependencies": [
    "basel-ii-capital-framework",
    "oecd-corporate-governance-principles"
  ],
  "primary_citations_count": 9
}