Four important components of a risk-based supervisory strategy:
- Medium-term and long-term objectives, approaches, and resources required highlighting the different approaches and objectives for the different categories of risk profiles-- for instance, higher, medium, or lower risks.
- Operational plan focused on a sector or a group of financial institutions: Processes, compliance testing.
- Supervisory activities analyzing trends, typologies, and risks, on one hand, and informing developments, priorities and training, on the other.
- Stakeholder engagement with domestic and international relevant actors, facilitating the exchange of best practices, emerging trends, and effective risk mitigation strategies.
