Refer to SAMA Circular 321000028412 dated 20 November 2011.

During 2011, the Basel Committee on Banking Supervision has published two documents related to Operational Risk Management. In this regard, Bank Managment can specifically  benefit from these papers by incorporating the relevant principles and guidance information in their Operational Risk Management and control policies and procedures.

SAMA would like banks to be fully aware of the following Basel Committee Papers issued during 2011:

1. June 2011 - Operational Risk Supervisory Guidelines for Advanced Risk Measurment Approach (Now replaced with SAMA Circular 440471440000, Basel III Reforms).
2. June 2011 - Principle for Sound Management of Operational Risk

We suggest that Banks should access these papers from Bank for international Settlement website http://www.bis.org/. The Banks should distribute these papers to relevant managers in Risk Management, Compliance and Internal Audit to keep them abreast of the current developments and practices.