FSB is consulting on supervising risk culture and has published a set of principles for setting an effective risk appetite framework. Both measures are part of the move towards a more intense and effective approach to supervising systemically important financial institutions (SIFIs). The consultation puts forward guidance on outcomes-based supervision that engages at senior level and assesses institutions' business models and risk appetite. Risk culture must be aligned with the stated risk appetite and be based on articulated values. A risk appetite framework involves a risk appetite statement and clear risk limits and definition of role and responsibilities over risk management. Although prepared with SIFIs in mind, these principles can be applied, proportionally, to other financial institutions. (Source: FSB Releases Guidance for More Effective Supervision of Risk Appetite and Risk Culture at Financial Institutions)