CM-B.2 CM-B.2 Guidance provided by other international bodies
Basel Committee: Principles for the Management of Credit Risk
CM-B.2.1
The paper (see www.bis.org/publ/bcbs75.pdf) which contains 17 principles, encourages banking supervisors globally to promote sound practices for managing credit risks in banking activities.
CM-B.2.2
Throughout the module, references have been made to this paper and it is recommended that the regulations in this module be followed in conjunction with the guidelines presented in this paper.
Counterparty Risk Management Policy Group (CRMPG): Improving Counterparty Risk Management
CM-B.2.3
This report (see www.isda.org/educat/pdf/CRMPG-report6-99.pdf), which was developed by a committee of market practitioners in the wake of the 1998 market disruptions, discusses
counterparty credit risk and market risk management practices and how they can be enhanced.CM-B.2.4
The report covers four subject areas: transparency and
counterparty credit assessments; risk measurement, management, and reporting; market practices and conventions; and regulatory reporting.CM-B.2.5
Of particular interest to risk managers is guidance provided in two areas, one on liquidity risk and leverage, and the other on
counterparty creditexposure estimation.Basel Committee: Framework for Internal Control Systems in Banking Organisations
CM-B.2.6
The paper (see www.bis.org/publ/bcbs40.pdf) issued in September 1998 presents the first internationally accepted framework for supervisors to use in evaluating the effectiveness of the internal control over all on- and off-balance-sheet activities of banking organizations.
CM-B.2.7
The paper describes elements that are essential to a sound internal control system, recommends principles that supervisors can apply in evaluating such systems, and discusses the role of bank supervisors and external auditors in this assessment process.
