Supervisory priorities and assessment of risks and vulnerabilities
Our supervisory priorities set out the focus of our activities for the next three years. They are revisited annually to reflect changes in the risk landscape and progress made on the previous year’s priorities, and can be adjusted at any time if justified by risk developments. They guide the operational planning of supervisory activities over the medium term and ensure resources are allocated efficiently.
The priorities are based on the key risks that supervised institutions face in the current macro-financial and geopolitical environment.SSM supervisory priorities 2024-2026
What are supervisory priorities?
Strengthen resilience to immediate macro-financial and geopolitical shocks
The current environment is shaped by an uncertain macroeconomic outlook, tighter financing conditions and persistent geopolitical tensions. We need to make sure banks stay resilient and address the immediate impact of external shocks on their businesses.Strengthening banks’ resilience
Accelerate the effective remediation of structural shortcomings
Banks need to tackle weaknesses in their internal governance arrangements. They must also promptly meet supervisory expectations on climate-related and environmental risk management. Supervisors will use the tools at their disposal, including escalation, to ensure sufficient progress.Remediation of structural shortcomings
Further progress in digital transformation and operational resilience
Banks need to step up their digitalisation efforts to cope with increasing competition, while also strengthening their operational frameworks to remain resilient against evolving cyber threats and potential disruptions to their operations.Digital transformation and operational resilience
How do we use the supervisory priorities and the risk assessment?
The SSM priorities feed into institution-specific supervisory planning, as joint supervisory teams apply a targeted risk tolerance framework that promotes effective and risk-based supervision. In this way, the priorities are also important for the following year’s Supervisory Review and Evaluation Process (SREP), and they benefit from the outcome of the previous year’s SREP exercise.