Authority publishes updated risk tolerance statement

The Isle of Man Financial Services Authority has today, Wednesday 23 February, published an updated version of its Enterprise Risk Tolerance Statement.

The Statement explains the degree of risk the Authority is, and is not, willing to accept in the pursuit of its objectives of protecting consumers, reducing financial crime and maintaining confidence in the financial services sector.

It sets out how the Authority identifies and manages different categories of internal, external and supervisory risk to ensure its resources are focused where they are needed most.

Understanding the Authority’s approach to risk within a rapidly evolving industry is important for all businesses that are subject to its regulation, supervision and oversight.

Bettina Roth, the Authority’s Chief Executive Officer, said: ‘It is recognised that firms operate in a competitive and increasingly innovation-led environment and need to take reasonable risks. The focus of the Authority is to identify the biggest risks to its objectives and allocate its resources to achieve the best possible outcomes for consumers, the finance sector and the Island.’

She added: ‘Establishing a framework to calibrate risk appetite helps to inform decision-making at every level of the Authority. By publishing the Enterprise Risk Tolerance Statement we aim to provide stakeholders with clarity regarding our approach, as part of our overall commitment to openness and transparency.’

The Authority’s risk tolerance is reviewed annually and the published Statement reflects changes made to the document issued in November 2020.