Nepal Rastra Bank has issued a circular dated 2074-08-13 on Risk Management Directive. The directive has discussed on Risk Management, Risk Management Program, Oversight, RM function, Limit, Risk Appetite, classification of risk, credit risk management, operation risks etc.
The directive has focused on the requirement of:
- Defining Risk Management Program
- Risk Appetite shall be decided along with the Tolerance Limit
- Identify Material Risks involved in the operations
- Appropriate segregation of Duty shall be ensured
- Adequate Internal Controls shall be in place to mitigate the risks
- Disaster Recovery and Business Continuity Plan shall be defined