On June 21, 2016, the Banking Supervision arm of the ECB published a SSM supervisory statement on governance and risk appetite. In 2015, a thematic review was undertaken of all significant firms in the euro area to assess their management bodies and their risk appetite frameworks. The supervisory statement reports on the findings from that review, identifies good practices and sets out supervisory expectations for a bank’s board and risk appetite framework, aiming to guide banks on their implementation of international best practices.

The supervisory statement is available at: https://www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm_supervisory_statement_on_governance_and_risk_appetite_201606.e n.pdf