Accessible Version
Accessible Version
Figure 1: The supervisory action continuum
This is a flowchart diagram illustrating the progression of supervisory actions arranged from left to right by increasing severity. The chart displays nine circular nodes connected by arrows in a linear sequence. The first node is green (labeled "Supervisory Observation"), followed by six yellow nodes ("MRA," "MRIA," "Downgrade Supervisory Rating," "Enforcement Action," and "Civil Money Penalty"), and concluding with three red nodes ("Activate Recovery Plan," "Going-Concern Resolution," and "Gone-Concern Resolution"). Above the sequence is a dark blue arrow pointing right with text stating "Based on probability and severity, can escalate from a lower to higher-level action out of sequence," indicating that the progression need not always follow the exact order shown.
Note: The figure displays potential supervisory actions that can be taken to remediate supervisory observations. The actions are ordered from left to right by severity. The arrow illustrates that supervisors have the discretion to escalate remediation actions from a lower to a higher level out of sequence based on probability or severity. Some of these actions, such as activating a recovery plan, only apply to the largest and most systemic banking organizations.