---
entity_slug: bank_systemic_risk_management
entity_type: Process
vsm_system: S3*
type_rationale: Bank Systemic Risk Management is fundamentally an ongoing activity
  of identifying, assessing, and controlling risks rather than a static entity that
  exists independently.
vsm_rationale: This process serves an audit function by inspecting and monitoring
  the integrity of the entire banking system to ensure compliance with stability requirements
  and prevent systemic failures.
classified_at: '2026-02-23T10:47:37.752695'
---

# Classification: Bank Systemic Risk Management

## Entity Type

Process

## VSM System

S3*

## Type Rationale

Bank Systemic Risk Management is fundamentally an ongoing activity of identifying, assessing, and controlling risks rather than a static entity that exists independently.

## VSM Rationale

This process serves an audit function by inspecting and monitoring the integrity of the entire banking system to ensure compliance with stability requirements and prevent systemic failures.