Supervision & Credit | Strategic Focus

Risk and Policy Analysis Risk and Policy Analysis

The Bank’s Risk and Policy Analysis Unit (RPA) conducts research and analysis to support the Federal Reserve System's supervisory efforts, development and implementation of regulatory policy, and formation of monetary policy. The RPA has made significant policy contributions to operational and credit risk studies in support of the new Basel II Accord.

The RPA has supported efforts to finalize the treatment of operational and credit risk in the Basel II Accord by analyzing various quantification techniques and investigating domestic implementation challenges.

The RPA also participates in the bank supervisory process by providing expertise in emerging industry practices on operational and credit risk management and quantification methodologies for large, complex and specialized banking organizations that are or will be expected to utilize sophisticated quantitative techniques to measure and allocate capital for both operational and credit risk.

In addition, the RPA contributes to policy deliberations by analyzing information obtained through the supervisory process regarding the condition of the banking industry and broader credit markets and researching the interrelationships of financial sector conditions and the macroeconomy.