Featured Product

    FIN-FSA Updates Rules and Guidelines on Management of Operational Risk

    November 11, 2019

    FIN-FSA updated the "Regulations and guidelines 8/2014" on management of operational risk by supervised entities. The Regulations and guidelines 8/2014 will enter into force on January 01, 2020. These regulations and guidelines concern the principles and organization of operational risk management, covering the topics of process management, staff, information and payment systems, information security, continuity planning, and legal risk. Among others, the updates have been made in incident reporting concerning network and information security breaches and fraud reporting concerning payment services.

    The objective of these regulations and guidelines is to ensure that the following steps are taken:

    • The supervised entity organizes its operational risk management to fulfill requirements determined by the scope and character of its operations.
    • If necessary, the risk management tasks may be outsourced in compliance with the FIN-FSA regulations and guidelines 1/2012 on outsourcing. 
    • The supervised entity ensures an appropriate level of information management, information security, and continuity of operations. 
    • FIN-FSA is informed of significant disruptions and faults in the entity's operations and other impairments as well as losses due to realizations of operational risk.

    The amendments to the regulations and guidelines are due to Directive 2016/1148 on security of network and information systems (NIS), Article 96(6) of the reformed Payment Systems Directive (PSD2) (EU) 2015/2366, Article 33(6) of Regulation (EU) 2018/389, Guidelines of EBA on fraud reporting (EBA/GL/2018/05), and on the conditions to benefit from an exemption from the contingency mechanism under PSD2 (EBA/GL/2018/07). Through these amendments, FIN-FSA provides more specific regulations and guidelines for incident reporting under the NIS Directive. The regulations and guidelines also communicate to supervised entities certain EBA guidelines which should be taken into account by the supervised entities in their activities.


    Related Links

    Effective Date: January 01, 2020

    Keywords: Europe, Finland, Banking, Operational Risk, Outsourcing, EBA, FIN-FSA

    Related Articles

    US Regulators Release Stress Test Scenarios for Banks

    The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).

    February 28, 2024 WebPage Regulatory News

    Asian Governments Aim for Interoperability in AI Governance Frameworks

    The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.

    February 28, 2024 WebPage Regulatory News

    EBA Proposes Operational Risk Standards Under Final Basel III Package

    The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.

    February 26, 2024 WebPage Regulatory News

    EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS

    The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.

    February 23, 2024 WebPage Regulatory News

    ECB to Expand Climate Change Work in 2024-2025

    Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.

    February 23, 2024 WebPage Regulatory News

    BIS Bulletin Examines Cognitive Limits of Large Language Models

    The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.

    January 25, 2024 WebPage Regulatory News

    ECB is Conducting First Cyber Risk Stress Test for Banks

    As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.

    January 24, 2024 WebPage Regulatory News

    EBA Continues Momentum Toward Strengthening Prudential Rules for Banks

    A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.

    January 24, 2024 WebPage Regulatory News

    EU and UK Agencies Issue Updates on Final Basel III Rules

    The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards

    December 19, 2023 WebPage Regulatory News

    Industry Agency Expects Considerable Uptake for Swiss Climate Scores

    The Swiss Federal Council recently decided to further develop the Swiss Climate Scores, which it had first launched in June 2022.

    December 18, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8952