The Effectiveness Of A Risk Based Supervision Model As Adopted By The Kenyan Capital Market

Risk based supervision (RBS) is a structured approach that concentrates on the identification of potential risks faced by firms and the assessment of the financial and operational factors in place to minimize and mitigate those risks. Risk Based Supervision aims at promoting transparency, providing early warning signals and encouraging the regulated entities to self-evaluate their position at regular intervals. Little research has been done on the effect of RBS as adopted by the capital market so far. It was with this background that this study tried to cover the effectiveness of a risk-based …