The RBS can be supplemented by thematic assessments which can address risks arising through common exposures and common causes. Supervisory methodology is under considerable focus and it needs to be constantly evaluated and improved upon to make the financial system safer as only framing regulations will not suffice. Lastly, let me mention the importance of stress testing.
The risk models have their own limitations, due to behavioural aspects, as I have mentioned earlier. Stress testing is an important risk management tool to enable the supervisors to know what happens in the tails. I would end my address by a quote I came across recently “In every crisis there is a message.