Banks are exposed to various risks inherent to their business operations and they are often heavily interdependent. Therefore, the management of such risks in an integrated manner is essential to promote the soundness of the banking system. At the same time, international best practices mandates that banks should have a comprehensive Integrated Risk Management (IRM) Framework to identify, control and mitigate such risks. These Central Bank of Sri Lanka guidelines broadly cover the management of credit, market, operational, liquidity and interest rate risks, stress testing and disclosure requirements in an IRM Framework, based on standard market practices.
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