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OM-8.2.12

Management should translate the operational risk management framework established by the board of directors into specific policies, processes and procedures that can be implemented and verified within the different business units. While each level of management is responsible for the appropriateness and effectiveness of policies, processes, procedures and controls within its purview, senior management should clearly assign authority, responsibility and reporting relationships to encourage and maintain this accountability, and ensure that the necessary resources are available to manage operational risk effectively. Moreover, senior management should assess the appropriateness of the management oversight process in light of the risks inherent in a business unit's policy.

Added: April 2008