Risk-Focused Supervision

 

With the largest banking organizations growing in both size and complexity, the Federal Reserve has moved towards a risk focused approach to supervision that is more a continuous process than a point-in-time examination. The goal of the risk focused supervision process is to identify the greatest risks to a banking organization and assess the ability of the organization’s management to identify, measure, monitor, and control these risks. Under the risk focused approach, Federal Reserve examiners focus on those business activities that may pose the greatest risk to the organization.

Back