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  • IC-1.4 IC-1.4 Comprehensive Assessment of Risk

    • IC-1.4.1

      Bahraini Islamic bank licensees must ensure that their ICAAP identifies and assesses all material risks and addresses the following:

      (a) Credit risk, market risk and operational risk, captured under Pillarl;
      (b) Risks that are not taken into account by Pillar 1 (e.g. rate of return risk in the banking book, liquidity risk, reputational risk, strategic risk and concentration risk); and
      (c) External factors outside the direct control of the licensees, including changes in regulations, accounting rules and the economic environment (e.g. business cycle effects).

    • IC-1.4.2

      For each of the material risks identified in the ICAAP, banks must ensure that the risk management framework (in HC-6.6.2) is comprehensively addressed.

      July 2018

    • IC-1.4.3

      Bahraini Islamic bank licensees must ensure that their risk management infrastructure allows for aggregation of exposures and risk measures across business lines.

      July 2018