RegAlert

Rule · BCV · 27 May 2019

Diagram of the Risk Assessment and Controls Application Methodology

capital
governance

The regulatory authority establishes a standardized Risk Assessment and Controls System that mandates comprehensive qualitative evaluations of specific risks, internal governance structures, and control activities alongside quantitative CAELS metrics covering capital adequacy, asset quality, earnings, liquidity, and market sensitivity. The framework requires financial institutions to systematically identify inherent risks, implement targeted control measures, and monitor organizational culture, strategic planning, and audit functions to ensure robust risk management. Compliance with this methodology ensures consistent application of risk evaluation diagrams across all operational and managerial levels, thereby enhancing regulatory oversight and institutional resilience.

Cape VerdeBanco de Cabo Verde

Risk Assessment and Controls System

Methodology

Qualitative Assessment

  • Specific Risks and Controls

    • Credit Risk
    • Liquidity Risk
    • Market Risk
    • Compliance Risk
    • Strategy Risk
    • Operational Risk
    • Reputation Risk
    • IT Risk
    • Inherent Risk Assessment
      • Risk Elements
    • Specific Controls Assessment
      • Risk Assessment
        • Identification and Assessment
      • Control Activities
        • Monitoring and Control

  • Internal Governance

    • Organization
      • Control Environment
        • Organizational Structure and Culture
      • Information and Communication
        • Reporting and Distribution Channels
      • Monitoring Activities
        • Internal and External Audit
    • Management
      • Control Environment
        • Strategic Planning
        • Management Structure and Quality
        • Risk Attitude

Quantitative Assessment

  • CAELS
    • Capital
      • Capital Adequacy
    • Asset Quality
      • Asset Quality
    • Earnings
      • Results or Profitability
    • Liquidity
      • Maturity or Liquidity
    • Sensitivity
      • Market Sensitivity

Note from RegAlert. AI assistants can read this document in full, and search 70,000+ more, through the RegAlert MCP connector (https://mcp.regalert.today/mcp). Free with an account. How to connect ChatGPT, Claude or Cursor.

Similar documents from other regulators

More like this from BCV

We email you every new BCV publication the day it's published.

Source: Banco de Cabo Verde — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works

In RegAlert: added · updated