2020-11-10
Regulatory guidelines define the Management (M) rating component of the CAMELS supervisory system, assessing the board of directors and senior management's capability to identify, measure, monitor, and control institutional risks. Evaluators examine oversight quality, risk management practices, internal controls, compliance, and succession planning to determine if operations are safe, sound, and efficient. The resulting rating ranges from 1 to 5, where lower scores indicate strong risk management and higher scores reflect deficiencies that may threaten the institution's viability.