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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER33/02-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Financial Markets Tribunal

Whole SectionText only Print Print Manager Link

(1 version)
Dec 9 2012 onwards

PIB 6 Guidance

Whole Section PDF

The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

1. This chapter includes the detailed RulesG and associated guidance in respect of a firm's obligation to manage effectively its exposures to Operational RiskG . Operational RiskG refers to the risk of incurring losses due to the failure of systems, processes, and personnel to perform expected tasks. Operational RiskG losses also include losses arising out of legal risk. This chapter aims to ensure that an Authorised FirmG has a robust Operational RiskG management framework commensurate with the nature, scale and complexity of its operations and that it holds sufficient regulatory capital against Operational RiskG exposures.
2. This chapter requires an Authorised FirmG to:
a. design and implement an effective Operational RiskG management system complete with appropriate systems and controls;
b. calculate the Operational RiskG Capital RequirementG and hold the same; and
c. hold adequate professional indemnity insurance cover.
3. This chapter includes, among others, specific Operational RiskG management requirements relating to IT systems, information security, outsourcing, business continuity and disaster recovery and the management of Operational RisksG in trading rooms.
4. PIB Appendix 6 provides the detailed requirements, parameters, calculation methodologies and formulae for calculating the Operational RiskG Capital RequirementG specified in PIB chapter 6.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]