Examiners will look to see whether policies and procedures provide for adequate risk identification, assessment, measurement, and control. As I mentioned a few moments ago, clearly communicated roles and responsibilities are a characteristic of an effective compliance program. Toward that end, examiners will also look to determine whether policies clearly delineate accountability and lines of authority across the organization's activities.
We monitor the financial system… We continuously monitor the financial system in order to identify and assess: •  •  Structural risks: ever-present risks related to the composition of the financial system, in terms of its institutions, and their assets and funding. New Zealand is exposed to external shocks and standards must recognise these risks and shield the domestic system and economy.