The Central Bank of Nigeria on Monday released the Nigerian Payments System Risk and Information Security Management Framework to guide the management of risks associated with the payment system in Nigeria.
The framework which had already been approved by the apex bank became imperative to identify and address sources of systemic risks within the Nigerian payments system landscape.
Some of the risks that the framework is expected to address are systemic risks; credit risks, liquidity risks, operational risks, compliance, legal and regulatory risks, settlement risks and information security risks.
The framework is also meant to establish sound governance arrangements to oversee the risk management framework by ensuring that risks are identified, monitored and treated; and establish clear and appropriate rules and procedures to carry out the risk management objectives.
Other objectives of the framework are to employ the resources necessary to achieve the payments system and to integrate risk management into the decision making processes.
The apex bank said the framework would guide the operators and users of the payment systems across Nigeria.
It said these systems could be organised, located, or operated within Nigeria (domestic payments), outside Nigeria (offshore payments), or both (cross-border payments) and might involve currencies other than the naira.
It read in part, “At a minimum, the risk management framework shall establish sound governance arrangements to oversee the risk management framework; set sound risk management objectives and establish processes for identifying the key risks associated with the payment scheme; establish clear and appropriate rules and procedures to pursue the stated objectives.”
It added that framework would, “employ the resources necessary to achieve the system’s risk-management objectives and implement effectively its rules and procedures; and build resilience and security adequate to ensure the confidentiality, integrity and availability of the system.”