Following the publication of CEBS’s high level principles on Internal Governance (CEBS Guidelines on the Application of the Supervisory Review and Evaluation Process- Section 2), its high level principles on risk management and its high level principles on remuneration policies, CEBS now introduces more specific principles and implementation measures for the identification, assessment, control and monitoring of operational risk in market-related activities.
CEBS principles are divided into three different parts, addressing the management of operational risk in market-related activities from three different angles:
• Governance mechanisms - principles 1-5;
• Internal controls - principles 6-15;
• Internal reporting systems - principles 16-17.
While these guidelines are relevant to all institutions, the principle of proportionality should be taken into account in their application.
In developing these guidelines, CEBS benefited from views gathered from market participants. Input was provided through the industry’s responses to the two public consultations (CP35 and CP35rev, published in December 2009 and June 2010 respectively) and through a public hearing organised in March 2010. CEBS has considered the feedback received and has revised its initial proposals in order to address the main issues raised by market participants (see feedback document).
CEBS expects its members to implement the guidelines on market-related activities by 30 June 2011.
© CEBS - Committee of European Banking Supervisors
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