OJK Proposes Regulation on Risk Management for Non-Bank Entities
OJK issued a consultation on draft regulation on the application of risk management for non-bank financial services institutions. OJK requested responses until August 31, 2019. The regulation shall come into force on the date of promulgation. The draft regulation includes chapters on scope of risk management, supervision of Board of Directors, policies and procedures of risk management, risk monitoring, reporting, and penalty.
Non-bank financial services institutions are required to submit a quarterly risk profile report to OJK in March, June, September, and December. Risk profile reports shall be submitted no later than 15 working days after the end of the reporting month. If needed, OJK may request the institution to submit a risk profile report beyond the stipulated time period. Provisions regarding the format and procedures for submitting a risk profile report shall be determined by OJK.
A non-bank financial services institution is required to be able to manage risks that can cause disruption of business sustainability. Through the application of risk management, a non-bank financial services institution is expected to be able to better identify, measure, control, and monitor the risks faced in carrying out its business activities.
Related Links (in Indonesian)
Comment Due Date: August 31, 2019
Effective Date: Date of Promulgation
Keywords: Asia Pacific, Insurance, Indonesia, Banking, Risk Management, Reporting, Non-Bank Financial Institutions, Credit Risk, Operational Risk, OJK
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