To improve its risk-based approach to supervision, the FSA has undertaken a review of its risk-assessment framework, ARROW. The FSA undertook a consultation with the industry, trade associations and with FSA staff who use ARROW. The consultation found that the use of ARROW was appropriate however improvement to the operation of ARROW was required. The FSA identified improvements to its levels of communication with firms, for example it is to introduce a draft ARROW letter, so firms receive a draft of the FSA’s findings. This should enable firms to respond before the FSA issues the firm with a final letter and Risk Mitigation Programme.