For example, core principles 12 and 13 state that banking supervisors must be satisfied that banks have in place risk management systems which accurately identify, measure, monitor and control market risks and all other material risks. Furthermore, banks are required to hold an adequate amount of capital against these risks.
These principles reflect the growing recognition that banks bear the principal responsibility for adequate risk management themselves. The main task of supervisors is to set minimum standards and to monitor the policies and procedures through which banks control their risks. 6.