CBCS issues Guideline for the Sound Management of Operational Risk

Willemstad/Philipsburg – The Centrale Bank van Curaçao en Sint Maarten (CBCS) recently issued the Guideline for the Sound Management of Operational Risk. This guideline provides guidance to all regulated entities to identify, measure and proactively manage, monitor and mitigate operational risk. All regulated entities are expected to observe this guideline and apply this in their daily operations.

The Guideline for the Sound Management of Operational Risk is mainly based on the Principles for the sound management of operational risk as set out by the Basel Committee on Banking Supervision (BCBCS)1 and the Insurance Core Principles and Common Framework for the Supervision of the Internationally Active Insurance Groups as set out by the International Association of Insurance Supervisors (IAIS)2. The guideline will allow for better management of operational risk and improved assessment of capital adequacy in relation to operational risk exposures of individual institutions.

The different representative organizations of the credit, insurance, trust and pension funds sector were consulted on this guideline, which led to constructive discussions and feedback.

Regulated entities will have one-year to take action to comply after which the guideline will be converted into a general binding regulation (in Dutch: algemeen verbindend voorschrift).

This guideline is published on the CBCS website and can be accessed through the following link https://www.centralbank.cw/legislation-guidelines/credit-institutions/guidelines.

Willemstad, July 1, 2024 CENTRALE BANK VAN CURAÇAO EN SINT MAARTEN