Skip to main content

Navigating Supervisory Evaluation

A conscious design of your supervisory evaluation process pays off – there is a lot to be gained.

Supervisory expectations continue to rise

Supervisory expectations continue to rise. A far more pro-active approach to supervisory evaluation is key to safeguard resilience in an increasingly complex environment. The reasons why this change in attitude is key for financial institutions are:

  1. Supervisory evaluation determines your capital requirements for the coming year – with Basel IV incoming, no organisation wants this requirement to be unnecessarily high as this may have severe (business) implications;
  2. Supervisory evaluation is a way to convey your in-control message to the supervisor – this can support your reputation but it is also walking a tight-rope. Effective communication and collaboration between financial institutions and supervisors are essential for ensuring compliance and addressing regulatory concerns;
  3. Supervisory evaluation is a recurring, time-consuming and a complex process – running a cycle puts the organisation under significant pressure. A sound supervisory evaluation process is a team effort which requires a number of highly skilled people that work closely together. Hiring and retaining qualified staff with expertise in regulatory compliance, risk management, and other relevant areas can be difficult, particularly in highly specialized roles. A shortage of skilled personnel can slow down processes and increase the risk of non-compliance.


Why would you consider optimising your supervisory evaluation processes?

  • To transition from ‘firefighting’ to a coordinated and efficient supervisory approach: A holistic view of your risk landscape provides you with a strategic advantage and a stronger response to change.
  • To become more resilient: Change only favors the prepared minds. With the right insight and information, financial institutions can mitigate and prepare for future risks and changes.
  • To respond to new regulation: Keeping up with the constantly changing regulatory landscape can be challenging. Supervisory focus for the coming years is a given, which enables your organization to anticipate and navigate the complexities of the evolving macro-economic and regulatory landscape.
  • To become more pro-active: You cannot afford to be a laggard. Financial institutions are expected to become more pro-active in preparing and adapting to risks instead of being reactive. Robust risk management frameworks must be in place. This includes assessing and managing credit, market, liquidity, operational, and compliance risks. Developing and implementing these frameworks effectively can be resource-intensive and complex.
  • To prepare for the future: There is a big pay-off. Risk is all around us and continuously changing in our complex world. Keeping up can be challenging in terms of both time and money.



✔️ Do you have a holistic view of your risk landscape? It should be easy to understand and communicate.

✔️ Do you have a full overview of the regulatory agenda (what is coming, in which order) and how it will impact your organisation?

✔️ Do you apply conscious decision-making in determining your key priorities – even in high pressure situations?

✔️ Do you have a defined and frequently evaluated agenda on supervisory communications?


Benefit from ACE’s experience and knowledge

At ACE we focus on structuring, orchestrating and implementing new regulations in the financial sector and we have a proven track record in change management in complex environments. Our broad knowledge and expertise enables us to connect different teams, departments and disciplines within organizations, with the aim of enabling organizations to meet their legal and regulatory obligations more efficiently.

Combining our experience and proven concept “the ACE Reg-Compass framework” with RegAI technology enables financial institutions to enhance their supervisory evaluation process and to make the transition from ‘firefighting’ to ‘controlled coordination’. Resulting in increased trust and stability, mitigating and reducing risk, an effective organization and an efficient regulatory compliance process.