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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Recognised Jurisdictions and Funds
Declaration Notices
Financial Markets Tribunal
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER34/12-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases

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  • PIB 6.4 Risk Monitoring and Reporting

    • PIB 6.4.1

      An Authorised FirmG must:

      (a) regularly monitor material ExposuresG to Operational RiskG losses;
      (b) ensure that appropriate reporting mechanisms are in place at its Governing BodyG , senior management, and business line levels to support effective management of the Authorised Firm'sG Operational RiskG ; and
      (c) immediately notify the DFSAG of any material Operational RiskG event including notification of any resulting financial impact, positive or negative, associated with such event.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

      • PIB 6.4.1 Guidance

        1. GEN Rule 5.3.17 requires an Authorised PersonG to establish and maintain arrangements to provide its Governing BodyG and senior management with the information necessary to organise and control its activities, to comply with legislation applicable in the DIFCG and to manage risks.
        2. PIB Rule 6.4.1 is intended to complement GEN Rule 5.3.17 and requires Authorised FirmsG to establish and maintain reporting mechanisms specifically addressing the Operational RiskG matters.
        3. The frequency of internal reporting of Operational RisksG required by PIB Rule 6.4.1(b) should reflect the risks involved and the pace and nature of changes in the Authorised Firm'sG operating environment.
        4. The following lists some of the items that an Authorised FirmG should consider including in its internal reporting of Operational RisksG :
        a. the results of monitoring activities;
        b. assessments of the Operational RiskG framework performed by control functions such as internal audit, compliance, risk management and/or external audit;
        c. reports generated by (and/or for) supervisory authorities;
        d. material breaches of the Authorised Firm'sG risk appetite and tolerance with respect to Operational RiskG ;
        e. details of recent significant internal Operational RiskG events and losses, including near misses or events that resulted in a positive return; and
        f. relevant external events and any potential impact on the Authorised FirmG and its Operational RiskG framework, including Operational RiskG capital.
        Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]