As financial institutions offer more sophisticated products and services, there will be more associated risks in their on-going risk management framework. This is particularly true as they grow in size and complexity, and their ability to identify, define, measure, manage, and organize to manage their risks are of utmost importance and major concern, especially from the supervisory point of view.
Given the change in the international regulatory climate where risk-based supervision is becoming a “norm”, regulators have to work closely with many professions to ensure that prudential standards and disclosure requirements are set.