This Operational Risk Management Evaluation Questionnaire is designed to provide a tool to assist Banks within the Kingdom in assessing and quantifying the adequacy of their programs for managing and financing operational risk This is not a detailed questionnaire, but covers the main areas of importance in the implementation and management of an effective program of operational risk management within the bank.

For this assessment to be both accurate and objective, the questions should be completed by staff who have an appreciation of overall operational risk management and the implications of the questions with respect to the banks operations and financial planning but who do not have day-to-day responsibility for either major operational areas or for the institution's insurance program. Involvement of Internal Audit personnel may provide both technical assistance in assessing operational risk and controls as well as helping to insure objectivity in the survey process.

There is no "pass" or "fail" score for this Questionnaire. Primary questions are designed to elicit a "yes" or "no" answer. A written response or comment to all questions may be given when the institution uses a different approach than that stated to address the issue or if it is felt that there are or other considerations which should be brought to management's attention. Accordingly, this questionnaire is divided into:

• (1)    Management oversight

• (2)    Risk Assessment

• (3)    Operational Risk Reduction and Control

• (4)    Insurance Options

The scope of all answers should include both domestic and foreign operations i.e inside and outside Saudi Arabia.