NBFIRA RBSS INDUSTRY WORKSHOP

RISK BASED SUPERVISORY SYSTEM INDUSTRY WORKSHOP

NBFIRA has adopted the Risk Based Supervisory model to regulation & supervision of financial institutions thereby contributing towards a stable financial system and aligning processes with best international practices. The Authority hosted introductory
workshops of the RBS System to Non-Bank Financial Institutions industry players.

The system is comprehensive and it is formally structured to assess risks within the financial system. It also assesses the
degree of risk in an institution's business operations and determining how to reduce the risk.
Some of the advantages of the RBSS are;
• It allows for the Regulator to allocate resources optimally to the supervision of entities based on their market size
and risk profile;

• Optimal supervision to ensure that entities with risky and problematic profile are identified early and corrective
action is taken timely before the problems become more complex;

• Focus on entities whose potential failure could lead to a systemic crisis;

• It encourages the regulated entities to identify their own risks and provide solutions in a timely manner; and

• Allows the Authority to produce timely and accurate reports for decision making.

NBFIRA…WORKING TOWARDS FINANCIAL STABILITY!!!