The Reserve Bank of India (RBI) has updated its “Guidance Note” on operational risk management for the financial sector, and extended it to non-banking financial companies (NBFCs), including housing finance companies. Only commercial banks were included in the 2005 ‘Guidance Note on Operational Risk Management’.
RBI said all regulated entities (REs) in India should implement robust information and communications technology (ICT) risk management program in line with their operational risk management framework.
“RES should manage their reliance on relationships for the delivery of critical functions, but not limited to, third parties (including intragroup entities),” the Reserve Bank said in its guidance note. The central bank said all regulated entities in India should implement robust information and communications technology (ICT) risk management program in line with their operational risk management framework.
RBI said REs should also verify whether the third party in these arrangements, including the intragroup entity, has at least equivalent operational resilience to safeguard the critical operations of the RE under normal circumstances and in the event of a disruption.
