Welcome to Module 2: Risk-Based Supervision.
In the previous module, you learned about the principle of proportionality and how it supports financial inclusion and inclusive Digital Financial Services. You were shown how proportionality is necessary to ensure supervision, as well as how regulatory resources can be allocated to where they are most necessary so that risks are appropriately managed.
In this module, we will explore how using a risk-based approach to supervision is critical to achieving proportionality in the supervision of Digital Financial Services.
The goal of this module is for you to recognise how a risk-based approach helps you achieve proportionality, and for you to be able to identify the relevant supervisory tools when applying a risk-based approach to the supervision of Digital Financial Services.
This module will cover the following topics:
- Strategically using supervisory tools
- Intra- and inter-agency coordination
- Risk-based approach to licensing and authorisations
Outcomes
By the end of this module, you will be able to:
- Explain how a risk-based approach to supervision achieves proportionality.
- Describe the benefits of a risk-based approach/methodology for the supervision of Digital Financial Services.
- Use relevant supervisory tools when applying a risk-based approach.
- Use risk-based approaches for licensing and authorisations.