Revisions to the principles for the sound management of operational risk

The Basel Committee has revised its Principles for the sound management of operational risk to make technical revisions to: (i) align the principles with the recently finalised Basel III operational risk framework; (ii) update the guidance where needed in the areas of change management and information and communication technologies; and (iii) enhance the overall clarity of the principles. The principles were introduced in 2003, and subsequently revised in 2011 to incorporate the lessons from the Great Financial Crisis. In 2014, the Committee conducted a review of the implementation of the principles which indicated that several principles had not been adequately implemented, and that they did not sufficiently capture certain important sources of operational risk.