While we do not interfere with business decision making, Regulated  3/6  BIS - Central bankers' speeches  Entities must demonstrate adequacy of internal controls and loss absorption capacity to match the risks that their business models may generate.
Our approach is to flag deficiencies in this area to the senior management or to the Board of Directors of individual institutions for remedial action. We also remain engaged with external auditors and flag issues that are relevant for their role as the third line of defence.