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.