132. Institutions should have delegation arrangements and procedures in place for any delegation by …

Institutions should have delegation arrangements and procedures in place for any delegation by the management body of the assessment and monitoring of CSRBB, including, but not limited to, the following:

• (a) Persons or committees to which tasks of the management body are delegated for developing CSRBB policies and practices, such as senior management, expert individuals or an ALCO, should be identified and have objectives clearly set out by the management body;
• (b) The management body should ensure that there is an adequate separation of responsibilities in the risk management process. The CSRBB identification, assessment, monitoring and control functions should have clearly defined responsibilities, should be independent from risk-taking functions on CSRBB and should report CSRBB exposures directly to the management body or its delegates;
• (c) The institution should ensure that the management body’s delegates have clear lines of authority over the units responsible for risk taking on CSRBB. The communication channel to convey the delegates’ directives to t hese line units should be clear; and
• (d) The management body should establish that the institution’s structure enables its delegates to carry out their responsibilities, and facilitates effective decision-making and governance. In this regard, an ALCO, or its equivalent, should meet regularly and its composition should reflect each major department linked to CSRBB. The management body should foster discussion regarding the CSRBB management process, both between its members and its delegates and between its delegates and others in the institution. The management body should also ensure that regular communication between the risk management and strategic planning areas facilitate the monitoring of the risk arising from future business.

4.5.4 CSRBB risk policies, processes and controls

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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