To identify possible risks to your bank, we will be broadening the scope of our work. First, we will include a macroeconomic perspective in our risk assessment of your institution. In other words, we will take macroeconomic and sector-wide developments into account. For instance, to what extent could the financial vulnerability of households and the risk of credit losses affect your bank?
Revenue model and culture
We will also expand our risk evaluation in our analysis of your business model and strategy: i.e. what specific risks are attached to the revenue model of your bank in today’s world and in the longer term? We will also focus considerable attention on conduct and culture, since board quality and effectiveness is also one of DNB’s supervisory themes in 2012.
Impact measurement will play a bigger role in our new supervision strategy. If we identify any major risks and decide to take mitigation measures, we will specifically concentrate on clearly defining the key problem. We want to set out in advance what effects we want to achieve. In doing so, we will explicitly focus on impact measurement (showing the effect of measures and actions). If there are any urgent problems, the regulator will refer them to specialist teams.