Enterprise-wide risk management has been evolving as financial theory has advanced, new technology has made modeling of risks more feasible, and innovation has helped to find better ways to mitigate risk. Some types of risk are further along in the evolutionary process. While there are many ways to categorize risk, I will use three broad categories for illustration -- market, credit, and operating.
To ensure that resolution powers are used in full, it would also help to have all the elements of the new resolution framework in place at the same time. The supervisory powers of the SSM will apply in principle from November 2014 onwards.