𝗥𝗘𝗚𝗨𝗟𝗔𝗧𝗢𝗥𝗬 𝗔𝗗𝗔𝗣𝗧𝗔𝗧𝗜𝗢𝗡 𝗧𝗢 𝗗𝗜𝗚𝗜𝗧𝗔𝗟 𝗔𝗡𝗗 𝗧𝗘𝗖𝗛𝗡𝗢𝗟𝗢𝗚𝗜𝗖𝗔𝗟 𝗥𝗜𝗦𝗞𝗦
𝟭. 𝗧𝗵𝗲 𝗖𝗼𝗿𝗲 𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗹𝗲: 𝗔 𝗙𝗹𝗲𝘅𝗶𝗯𝗹𝗲, 𝗥𝗶𝘀𝗸‑𝗕𝗮𝘀𝗲𝗱 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸
Adaptable regulatory frameworks are a strategic necessity in an era of rapid technological change. The Risk‑Based Supervision (RBS) framework is a core component of this strategy, designed with inherent flexibility to allow authorities to adapt to emerging risks driven by technological advancements, including those not explicitly covered by existing legislation. The inherent flexibility of the RBS framework is operationally dependent on a rigorous, multi‑faceted risk identification process capable of surfacing threats at both the systemic and institutional level.
𝟮. 𝗔 𝗗𝘂𝗮𝗹‑𝗟𝗲𝘃𝗲𝗹 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵 𝘁𝗼 𝗥𝗶𝘀𝗸 𝗜𝗱𝗲𝗻𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻
Comprehensive oversight requires a dual‑level approach to risk identification that encompasses both market‑wide trends and firm‑specific vulnerabilities. This ensures regulators can create a complete picture of the risk landscape. The process operates on two primary levels:
Industry‑Wide Assessment: At this macro level, authorities consider how anticipated technological developments could affect market structures.
Entity‑Based Supervision: At the micro level, supervisors evaluate an organization's IT systems and operational resilience to detect where harmful or illegal behavior might arise.
This integrated macro- and micro‑level surveillance provides the comprehensive data needed to move from general identification to a targeted assessment of specific threats and their potential impact.
𝟯. 𝗔𝗱𝗱𝗿𝗲𝘀𝘀𝗶𝗻𝗴 𝗦𝗽𝗲𝗰𝗶𝗳𝗶𝗰 𝗧𝗵𝗿𝗲𝗮𝘁𝘀 𝗮𝗻𝗱 𝗘𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗻𝗴 𝗣𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗜𝗺𝗽𝗮𝗰𝘁
Moving from general risk identification to a focused analysis of specific, high‑impact threats is a crucial step in the regulatory process. Cybersecurity is highlighted as a specific risk area that may require interaction with other regulatory bodies to address effectively. The ultimate objective of the risk assessment process is to determine the potential severity of such threats. As a prime example, a significant cybersecurity breach could directly cause the disruption of critical operations -the very type of severe consequence authorities evaluate when assessing the potential impact of an identified risk.