On 7 April 2014, the FSB published guidance on supervisory interaction with financial institutions on risk culture and a progress report on supervisory intensity and effectiveness. The guidance identifies factors which contribute to the promotion of a sound risk culture, provides some indicators of a sound risk culture and provides guidance for supervisors to assess how sound and effective a financial institution's risk culture is. The progress report on enhanced supervision sets out the work already done in this area and remaining work to be done, such as strengthening risk management and measurement and improving stress testing, resources and modeling.
The guidance on risk culture is available at: http://www.financialstabilityboard.org/publications/140407.pdf
The paper on enhanced supervision is available at: http://www.financialstabilityboard.org/publications/r_140407.pdf.
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