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IC-1.4.1

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

(a) Credit risk, market risk and operational risk, captured under Pillar;
(b) Risks that are not taken into account by Pillar 1 (e.g. IRRBB, 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).
July 2018