Global Journal of Management and Business Research, A: Administration and Management, Volume 23 Issue 2

Figure 2: Trajectory of Meta-Regulation under Risk-based Regulatory Strategy using ERM On the other hand, examining the annual report of the ten regulated banks provided evidence of implementation of ERM based self-regulation at the firm level. All the banks under scrutiny were provided risk management reports in the annual report along with disclosures regarding compliance with the BB’s risk management guideline and circulars, risk governance, risk management framework, risk management committee at board level and management level with photographs, the number of the meeting of the risk committees, establishment of a dedicated department for risk management, role and responsibilities of the risk management department, organogram of the RMD and CRO, preparation and submission of risk appetite statement, comprehensive and monthly risk management reports, stress testing report, ICAAP report and many more. Non-compliance with regulation might attract physical inspection, punishment, and sanction, including non-approval for dividend payment, opening a new branch, and getting an authorized dealership for foreign transactions. normative rationales for risk-based approaches, less attention has been paid to how this new governance technique was designed using meta-regulation, particularly in the financial industry. The meta-regulatory approach has received much acceptance from the regulators and becomes a key regulatory technique of risk-based approaches (9). Prior literature focusing on the roles of rationality and morality in meta-regulation. Consequently, it becomes problematic to generate an acceptable framework of meta-regulation. Thus, the process-oriented meta-regulation is advocating for moving beyond theory into practice (4, 45). This article provides an account how the process oriented meta- regulation implemented in practice using a regulatory Enterprise Risk Management in Designing Meta-Regulation under Risk-based Regulatory Strategy: An Empirical Evidence from Financial Regulation innovation to achieve the risk-based regulatory aims in financial industry. 46 Global Journal of Management and Business Research Volume XXIII Issue II Version I Year 2023 ( ) A © 2023 Global Journals a) Design of Meta-Regulation using ERM under the Risk-based Regulatory Strategy Risk-based regulation is now a widely promoted strategy across policy domains and still under the pavilion of “new governance” as a flexible regulation and an alternative to the “command and control” based regulation. While much attention has been paid to the Dashboard (FEMD) are some of the milestones of ISMD. It has developed “Pre-Inspection Assessment Report (PIAR)”, an excel-based risk calculator of a bank branch, which is mandatory to use for on-site inspection teams before starting their inspection. In addition, Bank Branch Risk Index, PIAR for Head Office, and Foreign Exchange Inspection are under process of development in this department. Moreover, this department prepares a report titled “Report for Banks’ Observer” based on ISS data which is provided to the “Observer” if appointed to any problem bank. This department also conducts some risk-based inspections on selective branches of banks and their head o ffi ces. The trajectory of the design of meta-regulatory framework using ERM under the risk-based regulation over the years in the banking sector of Bangladesh is summarised in Figure 2: