Fourthly, supervisors must focus on the efficacy of assurance functions viz. risk management, compliance and internal audit. The assurance functions serve as a critical safeguard providing independent and objective assessment of the bank's operations, risk management practices, and compliance with regulatory requirements.
By assessing the quality of the assurance functions, supervisors can identify potential vulnerabilities, assess the effectiveness of internal controls, and mitigate risks before they become bigger. 20. Fifthly, the Compliance culture at the entire organisation level is another critical area that demands supervisory attention.