Risk-based Supervision: Integrating the Supervisory Review of Supplementary Documents Into the Risk Matrix

A financial institution's supplementary documents provide supervisors with valuable insights into risk. Understanding how to use these documents effectively is essential to improving risk-based supervisory practices.

This TC Note and accompanying podcast:

• Briefly describes the purpose and value of four types of supplementary documents - own risk assessments, business models, recovery plans, and climate-related transition plans.
• Explores six principles for integrating the supplementary documents into risk-based supervision and the risk matrix.
• Discusses how the six principles can be applied to the supervisory review of supplementary documents.