Singapore’s financial regulatorhas launched a new set of guidelines aimed at shoring up risk management practices in the city state.

The Monetary Authority of Singapore (MAS) launched the guidelines, which are based on global industry practices, last month.

“Strong risk management culture at all levels of the organisation and clear oversight by board and senior management in implementing effective systems and processes are crucial factors in an effective risk management framework for any financial institution,” said Teo Swee Lian, deputy managing director, prudential supervision at MAS. “By issuing these guidelines for financial institutions to draw from, MAS aims to strengthen risk management in the financial sector.”

The guidelines are not mandatory, but the MAS hopes firms will take them on board.