The Monetary Authority of Singapore has issued guidelines to promote and strengthen strong risk-based procedures at financial institutions. The guidelines tell the industry to establish a comprehensive risk management framework. The MAS said financial institutions should base the framework on the nature, size and complexity of their operations. Teo Swee Lian, deputy managing director at MAS, said in a statement that as well as encouraging financial institutions to review and implement the recommended guidelines, MAS will update them periodically as industry standards and practices evolve and risk issues emerge.
The guidance also states financial institutions should:
• Increase involvement in risk management by boards of directors and senior management
• Define lines of authority and responsibility
• Identify and periodically reviewing risk
• Delineate employees’ duties to guard against fraud and unauthorized transactions
• Deal with customer complaints promptly and consistently
An MAS statement said the new guidance is based on global practices, and is not intended to be exhaustive, or to prescribe a uniform set of risk management requirements for all financial institutions.