Large organizations also increasingly operate and manage their businesses on an integrated basis with little regard for the corporate boundaries that typically define the jurisdictions of supervisors. Risks that cross legal entities and that are managed on a consolidated basis cannot be monitored properly through supervision directed at any one, or even several, of the legal entity subdivisions within the overall organization.
However, it is also important to continue to ensure that banks are not primarily judged according to their origin and geographical presence – here the horizontal functions of the SSM have an important role to ensure risk-based approaches to micro-supervision. Addressing the home-host issue is another important issue of concern. Aside from preventative measures there are also the crisis management tools.