13 February 2025, Baku: The alignment of the regulatory framework with the recommendations of the Basel Committee, which is recognized as the international standard for the regulation of the banking sector, has been identified as one of the strategic priority objectives of the Central Bank. In this regard, the Central Bank has developed and approved the Regulation on Operational Risk Management in Banks (Regulation), which is based on advanced international practices and standards.

The main objective of the regulation is to increase the continuity of banks' operations and to support the prevention of significant financial losses by ensuring a more flexible response to events in the operational environment. In particular, the new regulation sets out requirements for banks' operational risk management systems, the identification, measurement and monitoring of operational risks, internal and supervisory reporting, and the creation of an operational risk event database.

The implementation of this framework will allow banks to expand the existing database of operational risk events, more accurately calculate the losses incurred by the bank as a result of operational risk events, and to implement more advanced approaches to operational risk capital requirements in future periods.