This will provide a common vocabulary across the banking union for the description and identification of risk, and set out clear rules of the game for supervisors regarding risk appetite and how problems are to be mitigated. It will therefore be an early, important task, for the ECB to develop a common risk assessment framework and a protocol for on and off-site inspections.
Stepping back from this long to-do list, it must be pretty obvious what the central challenge is for the new single supervisory mechanism.