Vizor Risk-Based Supervision
Vizor Risk-Based Supervision allows the Financial Regulator to record the results of both off-site and on-site supervision activities and combine this with automatically calculated Key Risk Indicators (KRIs). A risk assessment can then be performed before the overall Risk Profile of each Regulated Entity is set. Industry-wide and peer group risk reporting provide a macro view of risk to enable decisions on how to divert valuable supervisory attention to the highest impact entities. Supervisors can identify risks early and instruct the Regulated Entity to act to mitigate identified risks.
Risk-Based Supervision requires a dynamic, cyclical process where the emphasis is on understanding and anticipating the possible risks to supervised entities and the systemic risk to the larger financial sector or indeed the overall economy. The demands on Regulators have grown rapidly and it can be a struggle to meet these demands. Regulators need a structured way to identify and assess risks so that they can allocate scarce supervisory resources commensurate with the identified risks.
Vizor Risk-Based Supervision collates and leverages regulatory data to identify risks. It enables the use of KRIs to produce an integrated risk profile per Regulated Entity and then across the financial sector. It also includes out-of-the-box onsite inspection templates, Risk Profile, KRIs, reporting and processes to support risk-based supervision. A micro and macro view of risk is provided to support decisions about the focus, depth, duration and frequency of both on‐site and off‐site supervision, supervisory staffing needs and the best allocation of limited resources.