Key Supervisory and Regulatory Initiatives SUPERVISION Harmonizing Risk Assessment Frameworks As part of our ongoing supervision of financial institutions, MAS employs industry specific risk assessment frameworks to periodically assess an institution's risk exposures, adequacy of risk management practices, and whether it deals with customers in a fair and transparent manner. These assessments allow MAS to identify problems or higher risk areas early. We are then able to take appropriate supervisory measures. While these separate frameworks from banking, insurance and capital maket activities have worked well, we recognised that they could be further streamlined. Despite differing industry characteristics and supervisory focus, there are important similarities in how we assess and supervise a financial institution. During the year, we conducted a comprehensive review to harmonize the risk assessment language and methodologies, and ensure that similar risks are assessed consistently. This work has culminated in the development of a risk assessment framework that will apply to all classes of institutions supervised by MAS, including banks, insurance companies and capital market intermediaries. Box 1 provides a summary of this harmonized framework. MAS has begun implementing and using the revised methodology to assess the risk profile of financial institutions. Going forward, we are strengthening the quality assurance process for bank supervision in order to enhance the robustness of our supervisory practices. This includes putting in place a formal process to ensure that supervisory plans, risk-focused examinations and risk rating assessments are performed more consistently.