Prompt and Comprehensive Risk Identification
Prompt and Comprehensive Risk Identification: Early identification of institutions’ inherent
or emerging risk exposures is a key element of effective forward looking supervision and is a
necessary complement to supervisory efforts to address and rectify risk management and
control gaps noted in institutions.
The authorities will need to continue to strengthen their
supervisory practices to enable the early and comprehensive identification of risks within
each institution, including the assessment of important risk drivers relating to an institution’s
business model and risk culture, stress testing, credit risk oversight, and on-site inspection of
insurance companies, as further elaborated below.
EU Forecast
euf:ba.18.j:93/nws-01