Guidance for management

Federal Reserve proposes guidance setting forth supervisory expectations for management relevant to assessing governance and controls in large financial institutions.

Key points

The proposed guidance for senior management:

  • Outlines supervisory expectations related to risk management at large financial institutions, distinguishing between senior management that reports directly to the board and business line management.
  • Is part of a larger initiative to establish a new rating system for large financial institutions.
  • Would, along with the Federal Reserve’s proposed supervisory expectations for boards of directors, inform the agency’s assessment of a large financial institution’s governance and controls.