Routine Risk Monitoring
Besides the deposit protection audits and those performed on behalf of the Compensation Scheme of German Banks, the routine risk monitoring of banks forms an indispensable component for effective risk management in the service of private deposit protection.
The tasks of risk monitoring include, among others:
The routine monitoring of banks taking into consideration the respective risk profile concerning the early detection and control of risks for the deposit protection
Intensive supervision of banks dependant on the respective risk profile
Deduction and implementation of recommended action for risk-relevant credit institutions to prevent risks as well as to supervise restructuring measures
Benchmarking of banks
Monitoring and analysis of current developments in the banking sector and of the important markets
Deduction of indicators for early detection of risks.
Monitoring for early detection of risks
The routine risk monitoring thus takes place in addition to the direct contact with the credit institutions and is based on the prompt analysis and the specific assessment of data of the supervisory reporting, which if applicable is supplemented by additional institution-specific data. An effective risk management thus requires a high level of timeliness, quality and validity of the data.
As a result of the early identification and assessment of risks and trends and, if required, a prompt establishment of measures to prevent risks, it is possible to avoid or at least minimise any threat to the deposit protection.
Routine risk monitoringRoutine analysis and assessment of internal-bank dataDetection of risks at an early stage to avoid or minimise any threat to deposit protectionClose supervision of banks in case of crisis
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