Other parts of what I call the safety-and-soundness work is more qualitative and judgmental.
Regulation attempts to limit reckless or self-dealing behaviour by financial firms both (i) ex ante in advance by vetting the persons in charge for their fitness and propriety, and by checking on compliance with clear rules of behaviour and (ii) ex post by means of penalties if  BIS Review 166/2009  1  it is discovered that violations have been committed.