HC-8.1.3
The risk management function must:
(a) Be sufficiently independent of the business units, thus ensuring that it is not involved in revenue generation;
(b) Be responsible for overseeing risk-taking activities across the licensee and must have authority within the organisation to do so;
(c) Have procedures in place to identify and assess the possible increased reputational risk to the licensee if it offers products or carries out activities outside Bahrain;
(d) Have access to all business lines that have the potential to generate risk to the licensee as well as to relevant risk-bearing subsidiaries, associated companies and overseas branches;
(e) Challenge business units effectively regarding all aspects of risk arising from the licensee’s activities; and
(f) Have a sufficient number of employees who possess the requisite experience and qualifications, including market and product knowledge as well as command of risk disciplines, and are subject to regular training.
Added: April 2023