Principles for the Sound Management of Operational Risk

 
Role of Disclosure 
Principle 11: A bank’s public disclosures should allow stakeholders to assess its 
approach to operational risk management.
60. 
A bank’s public disclosure of relevant operational risk management 
information can lead to transparency and the development of better industry practice 
through market discipline. The amount and type of disclosure should be commensurate 
with the size, risk profile and complexity of a bank’s operations, and evolving industry 
practice. 
61. 
A bank should disclose its operational risk management framework in a 
manner that will allow stakeholders to determine whether the bank identifies, assesses, 
monitors and controls/mitigates operational risk effectively. 
62. 
A bank’s disclosures should be consistent with how senior management and 
the board of directors assess and manage the operational risk of the bank.
28
 
63. 
A bank should have a formal disclosure policy approved by the board of 
directors that addresses the bank’s approach for determining what operational risk 
disclosures it will make and the internal controls over the disclosure process. In 
addition, banks should implement a process for assessing the appropriateness of their 
disclosures, including the verification and frequency of them.
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Basel Committee on Banking Supervision, International Convergence of Capital Measurement and 
Capital Standards: A Revised Framework - Comprehensive Version, Section V (Operational Risk), 
paragraph 646, Basel, June 2006, paragraph 810. 
29
Basel Committee on Banking Supervision, International Convergence of Capital Measurement and 
Capital Standards: A Revised Framework - Comprehensive Version, Section V (Operational Risk), 
paragraph 646, Basel, June 2006, paragraph 821. 
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Sound Practices for the Management and Supervision of Operational Risk

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