RR-A.1 RR-A.1 Purpose
Executive Summary
RR-A.1.1
The Reputational Risk Management Module sets out the Central Bank of Bahrain's ('CBB's') rules and guidance to
Islamic Bank licensees operating in Bahrain on establishing parameters and control procedures to monitor and mitigate reputational risks. The content of this Module applies to allIslamic Bank licensees , except where noted in individual Chapters.July 2018RR-A.1.2
This Module should be read in conjunction with other parts of the Rulebook, mainly:
(a) Principles of Business;(b) High-level Controls;(c) Credit Risk;(d) Market Risk;(e) Operational Risk;(f) Liquidity Risk;(g) Rate of Return Risk in the Banking Book ('RRRBB');(h) Internal Capital Adequacy Assessment Process ('ICAAP'); and(i) Stress Testing.July 2018Legal Basis
RR-A.1.3
This Module contains the CBB's Directive (as amended from time-to-time) relating to reputational risk management and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is applicable to all
Islamic Bank licensees (including theirapproved persons ).July 2018RR-A.1.4
Requirements of Section 3.3—Management of Step-in Risk are applicable to
Bahraini Islamic bank licensees only.July 2018RR-A.1.5
For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.
July 2018