To manage or prevent risks in real time, there is ongoing monitoring of the institution’s internal and external environment. Risk scenarios are analysed to keep the institution constantly alert and ready.
Guideline code
GG_06700
Mechanism
Mechanism
- The management should develop a set of risk indicators to monitor on an ongoing basis the risks faced by the institution. The indicators may be automated to provide the management with an early warning system.
- The management may task a core team to be responsible for an early warning system, to create a list of events and corresponding threats posed to the institution, and to assess the probability of occurrence of risks. The list should be updated on an ongoing basis.
- Process models and risk scenarios should be stress-tested and reviewed on an ongoing basis to ensure the most appropriate corrective strategies and measures are being applied.
- Environmental scanning and risk scenario analysis are coordinated with the planning and implementation of the institution’s strategic plan.
Structure
Structure
- The management should ensure ongoing environmental scanning and risk scenario analysis to evaluate the various risks faced by the institution.
- The board should exercise oversight on the results of the environmental scanning and risk scenario analyses.
Title HTML
Guideline 51. Scanning and scenario analysis
Type
Guideline_1
Weight
71