RM-A.1 RM-A.1 Purpose
Executive Summary
RM-A.1.1
This Module contains requirements relating to the management of risk by
licencees . 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) requireslicencees 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.October 2010RM-A.1.2
This Module obliges
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 alicensee'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 tolicensees with a complex and/or extensive customer base or operations.October 2010Legal Basis
RM-A.1.3
This Module contains the Central Bank of Bahrain's ('CBB') Directive (as amended from time to time) regarding Risk Management requirements applicable to
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'). Requirements regardingMoney Changer Licensees are also included in the Regulation Organising Money Changing Business, issued in 1994 and included in this Module.Amended: January 2011
October 2010RM-A.1.4
For an explanation of the CBB's rule-making powers and different regulatory instruments, see section UG-1.1.
October 2010
