On 11 January 2024, the Prudential Regulation Authority (PRA) published a Dear CEO letter to PRA regulated international banks active in the UK.
In the letter, the PRA notes that a common theme underpinning its 2024 priorities is the need for robust governance, risk management and controls at firms to enable the effective and proactive identification, assessment and mitigation of risks in an increasingly challenging and changeable operating environment. It reminds boards and executives that they should continuously challenge themselves to ensure they have appropriate structures, processes, capabilities and information in place within their own governance and risk management frameworks.
The 2024 priorities set out in the letter are:
- Risk management and controls.
- Financial resilience.
- Operational resilience.
- Data risk.
The letter should be read in conjunction with the firm-specific feedback received after firms’ most recent Periodic Summary Meetings with the PRA.