In a risk dominated environment, supervisors are expected to systematically challenge undertakings on their risk profile/appetite and on their ability to pursue it; for instance, supervisors should periodically discuss with the board of each company its risk profile and long-term strategies. IVASS has already taken some steps in this direction.
One example: immediately after an on-site inspection we convene a dedicated meeting with the board of the company, to discuss the outcome and possible corrective measures. In our experience not all board members are always willing and able to sustain such a constructive dialogue with the supervisors, especially in small undertakings. But that is essential in the new regulatory framework.