The Financial Supervisory Authority of Norway has updated its guidance for assessing risk and capital needs (SREP guidance) and has issued a clarification of the industry classification it will apply when measuring concentration risk. Annex 2 of the guidance sets out the authority’s methodology for calculating business sector concentration and notes that the new industry standard (SN 2025) underpins the industry segmentation used. Following publication of the updated guidance, the authority identified a need to specify the precise industry breakdown it will use for concentration risk measurement and has provided that breakdown in an accompanying spreadsheet.
Norwegian Finanstilsynet 2025-12-18
Financial Supervisory Authority of Norway clarifies SN 2025-based industry classification for measuring concentration risk in SREP guidance
The Financial Supervisory Authority of Norway has updated its Supervisory Review and Evaluation Process (SREP) guidance, clarifying the industry classification for concentration risk measurement. Annex 2 details the methodology for calculating business sector concentration, based on the new industry standard SN 2025. An accompanying spreadsheet specifies the precise industry breakdown for concentration risk assessment.