Risk-Based Supervision (RBS) identifies the critical risks encountered by a firm, as well as the systemic risks operating within the financial market. RBS assesses the firm’s management of those risks along with its financial vulnerabilities. Read more —-> Risk-Based Supervision
The globalisation of financial institutions and the resultant change in their risk profiles, necessitated regulatory requirements for firms to maintain, at all times, adequate capital commensurate with the level of risk inherent in their business activities. Read more —> Risk-Based Capital Adequacy Regulations
Financial regulators globally previously utilised traditional supervisory approaches to market regulation which focused on a Rules-Based System of control. This approach also known as Principles or Compliance-Based Supervision, is “a method of regulation which involves checking for and enforcing compliance with rules – legislation, regulations or policies – that apply …
