On 26 Jan. 2022, China Banking and Insurance Regulatory Commission (CBIRC) issued the “Guidance on Digital Transformation of Banking and Insurance Industries” (hereinafter “the Guidance”, 關(guān)于銀行業(yè)保險(xiǎn)業(yè)數(shù)字化轉(zhuǎn)型的指導(dǎo)意見), emphasizing that banking and insurance institutions need to develop industrial digital finance and comprehensively promote digitalized operating and management systems.
The Guidance points out that:
- Financial institutions are encouraged to recruit professionals with the technological background to the board of directors or senior management;
- Financial institutions are required to build enterprise-level risk management platforms to achieve centralized and unified management of rules strategies and model algorithms;
- Financial institutions are required to improve their data governance systems so as to realize systematic, automated, and intelligent data governance;
- Financial institutions are required to establish a comprehensive management framework for model and algorithmic risk; and,
- Financial institutions should enhance data security, improve privacy protection and strengthen security access control over data.
Cover Photo by Tao Yuan on Unsplash
Contributors: CJO Staff Contributors Team
