Shinhan Bank Holds Operational Risk Committee Meeting... Discusses Strengthening Internal Controls

Shinhan Bank announced on the 1st that it held the ‘Operational Risk Committee,’ an executive meeting body under the Risk Management Committee, as part of strengthening internal controls. Operational risk refers to the risk of loss resulting from inadequate or failed internal processes, people, systems, or external events.

The Operational Risk Committee was newly established to proactively respond to the ‘Principles for Sound Management of Operational Risk (PSMOR),’ which calls for redefining roles to strengthen the operational risk control system and enhancing the roles and supervisory responsibilities of the board of directors and executives.

At the meeting, the committee discussed the future direction of operational risk management and key initiatives. In particular, they deliberated on strategies to respond to strengthened operational risk regulations and selected and resolved critical operational risks that require systematic management due to their potential serious impact on the bank and its customers.

Additionally, the committee expanded the scope of operational risk management by discussing improvement measures for ICT risk, information security risk, and third-party outsourcing risk management. Through this, the concept of operational risk management at the bank shifted from a focus on ‘measurement’ to establishing a ‘practical management system’ aimed at preventing financial accidents.

Shinhan Bank plans to continue promoting customer-centric management by enabling customers to use financial services in a safer environment through such strengthened internal controls.

A Shinhan Bank official stated, “The holding of this Operational Risk Committee marks the starting point for actively responding to the enhanced PSMOR, which will be introduced from January next year, and will serve as a decision-making body to prevent financial accidents and spread a culture of operational risk management led by executives. As the importance of internal controls in the banking sector has recently been highlighted, we will create a safer bank through meticulous operational risk management.”

This content was produced with the assistance of AI translation services.