U.A.E's New Operational Risk Management Regulation
Article 15.2 has defined a four-hour notification window for qualifying operational risk events.
The UAE Central Bank’s Operational Risk Management Regulation took effect on the 14th of this month. Article 15.2 has defined a four-hour notification window for qualifying operational risk events. The previous standard had required banks to notify ASAP and no later than 24 hours.
Under the new regulation, the initial notification is due within four hours. A summary of the event, response actions, likely impact, and expected recovery time follows within 24 hours.
Very interested to see how banks update their procedures. If an event needs several internal reviews and approvals, those steps will definitely consume a chunk of the four-hour window. We can only wait to see if they are able to follow through on the procedural changes necessary to accommodate this change.