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  • RM-A.1 RM-A.1 Purpose

    • Executive Summary

      • RM-A.1.1

        This Module contains requirements relating to the management of risk by investment firm licensees. It expands on certain high level requirements contained in other Modules. In particular, Section AU-2.6 of Module AU (Authorisation) specifies requirements regarding systems and controls that have to be met as a license condition; Principle 10 of the Principles of Business (ref. PB-1.10) requires investment firm licensees to have systems and controls sufficient to manage the level of risk inherent in their business; and Module HC (High-level Controls) specifies various requirements relating to the role and composition of Boards, and related high-level controls.

        Adopted: July 2007

      • RM-A.1.2

        This Module obliges investment firm licensees to recognise the range of risks that they face and the need to manage these effectively. Their risk management framework is expected to have the resources and tools to identify, monitor and control all material risks. The adequacy of a licensee's risk management framework is subject to the scale and complexity of its operations, however. In demonstrating compliance with certain Rules, licensees with very simple operational structures and business activities may need to implement less extensive or sophisticated risk management systems, compared to licensees with a complex and/or extensive customer base or operations.

        Adopted: July 2007

      • RM-A.1.3

        The requirements contained in this Module apply to Category 1 investment firms and Category 2 investment firms only.

        Adopted: July 2007

    • Legal Basis

      • RM-A.1.4

        This Module contains the Central Bank of Bahrain's ('CBB') Directive (as amended from time to time) regarding Risk Management requirements applicable to investment firm licensees, 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').

        Amended: January 2011
        Adopted: July 2007

      • RM-A.1.5

        For an explanation of the CBB's rule-making powers and different regulatory instruments, see section UG-1.1.

        Adopted: July 2007