Risk and resilience

FINMA publishes the risk monitor annually. It provides an overview of what FINMA believes are the most important risks currently facing supervised institutions and describes the focus of supervisory activity. This creates transparency both for supervised institutions and the wider public about how FINMA fulfils its statutory responsibilities.

FINMA assigns prudentially supervised banks and securities firms to supervisory categories. Category 1 includes large institutions that could potentially destabilise the financial system. The risk impact of institutions in the lower categories reduces on a sliding scale down to category 5.

FINMA divides the insurance companies it supervises into five risk categories. In this way, it ensures differentiated supervision and makes efficient use of existing resources. The classification of supervised institutions is based on the risk potential for creditors, investors and policyholders, as well as for the Swiss financial centre as a whole.

New technologies, more complex systems and a rising trend towards outsourcing in information and communications technology are increasing operational risks in the cyber sphere for financial institutions and their service providers. FINMA raises awareness of these risks among supervised institutions and monitors compliance with regulatory requirements.

The uncertainties associated with real estate and mortgages continue to be among the principal risks facing the Swiss financial centre. Credit default risk and property valuation risk in particular are a key focus. In its guidance, FINMA sets out the findings from its supervisory activities in the area of mortgages, thereby creating transparency. 

FINMA oversees the adequate capture and management of significant nature-related financial risks by financial institutions and formulates corresponding supervisory expectations. At the same time, FINMA develops the necessary instruments for the appropriate integration of these risks into ongoing supervisory activities.