Consultation Paper on Updated Guidelines on Operational Risk Management

MAS published updated operational risk management guidelines requiring financial institution boards to hold ultimate accountability for the ORM framework, including approving risk appetite statements, overseeing independent reviews, and receiving timely escalation of significant operational risk events. A new requirement mandates a dedicated senior management-level ORM committee, creating a clear governance structure between board oversight and executive execution. SEA mid-market CEOs in financial services must close any gap between board-approved risk appetite and management-level monitoring cadence or face supervisory exposure post the six-month transition period.