Principles for assessing the financial stability efforts of federal oversight bodies – by third parties and on their own behalf – were published in a report Thursday by the Government Accountability Office (GAO).
The framework contains six components containing 18 key principles and related standards. It provides criteria for assessing the financial stability efforts of the Financial Stability Oversight Council (FSOC) and its member agencies (including NCUA), the GAO said.
GAO said the framework reflects consideration of its prior work and other relevant literature, internal control and risk-management standards, and discussions with a wide array of stakeholders. The components of the framework include mandate and scope; governance; risk assessment; risk mitigation; evaluation; and data and information.
“The framework principles reflect governance and operational standards and practices that, if met, promote sound decision-making around financial stability policy,” the report states. “As such, it is intended as a resource not only for GAO, but also for FSOC and its member agencies (in developing and implementing financial stability policy), the Inspectors General community (in overseeing FSOC and its member agencies’ activities), and Congress (in considering legislation related to financial stability). In addition, the framework may be used by legislators, regulators, and auditors in public-sector roles in other countries as well as by observers and analysts in the private sector.”