The Standing Committee on Assessment of Vulnerabilities (SCAV) is the FSB’s main mechanism for identifying and assessing risks and vulnerabilities in the financial system. The Committee focuses on macro-financial related vulnerabilities and risks arising from structural weaknesses in the financial system (such as misaligned incentives, amplification mechanisms or other forms of potential market stress). The SCAV draws extensively on the analytical and monitoring input of its members, including international financial institutions (IMF, BIS, OECD, World Bank) as well as securities regulators through IOSCO. The work of the SCAV focuses on the potential for international spill-overs across financial systems, which are difficult to cover in a domestic or regional context. The committee discusses and debates the key risks to the financial system and assesses them in terms of their materiality.  Where policy actions are deemed to be required to address vulnerabilities, the SCAV draws attention to them to the relevant forums, other FSB standing committees, and standard-setting bodies as appropriate. Within the FSB, the SCAV reports its findings to the Plenary. Updates on these assessments are provided in the press releases issued by the Plenary following its in person meetings.

The SCAV’s work is supported by an Analytical Group on Vulnerabilities (AGV), a technical standing sub-committee which provides an analytical forum to discuss new and evolving risks to the financial system. The SCAV also conducts early warning exercises (EWE) jointly with the IMF, which consider less likely, more disruptive forward-looking risk scenarios.