FSB Guidance on assessing risk culture - FINAL（FSB指导风险评估文化决赛）.pdf

Guidance on Supervisory Interaction with Financial Institutions on Risk Culture A Framework for Assessing Risk Culture 7 April 2014 Table of Contents Page Background i Introduction 1 1. Foundational elements of a sound risk culture 2 2. Indicators of a sound risk culture 3 3. General supervisory guidance 4 3.1 Tone from the top 5 3.2 Accountability 7 3.3 Effective communication and challenge 9 3.4 Incentives 9 Background Increasing the intensity and effectiveness of supervision is a key component of the Financial Stability Board’s (FSB’s) efforts to reduce the moral hazard posed by systemically important financial institutions (the SIFI Framework), along with requiring added capital loss absorbency and facilitating the orderly resolution of financial institutions.1 The FSB issued its first recommendations for enhanced supervision of financial institutions, in particular SIFIs, in October 2010, which underscored the key preconditions for effective supervision, including the need for (i) strong and unambiguous mandates; (ii) independence to act; (iii) sufficient quality and quantity of resources; and (iv) supervisors having a full suite of powers to execute on their mandate.2 Subsequent recommendations in 2011 and 2012 strengthened the supervisory expectations for financial institutions’ risk governance, internal controls and risk management functions, as well as risk data aggregation and risk reporting capabilities.3 A number of these recommendations have be