Risk Governance Framework
Our approach to risk is underpinned by a Risk Management Framework that focuses on the management of the most significant strategic, operational and regulatory risks to our objectives. The Risk Management Framework is a set of processes, policies, standards, disciplines and a cultural attitude, that ensures that there is good consistent understanding of risk, focusing our regulatory activity and resource allocation in those areas which are outside the GFSC’s risk appetite and tolerance with a focus on how best to support the safe growth of the jurisdiction.
The Risk Framework is based on 5 key components:
Adoption of a proactive, robust and consistent Risk Management Framework enables the GFSC and its management to meet its objectives as evidenced through the following outcomes:
- Senior Management and other key stakeholders, including the Board and consumers, will have assurance that the core processes and systems are effectively controlled, are fit for purpose and that risk is being managed in the right way.
- Management and staff will be better equipped to take action on risks and control in a timely manner thus supporting operational efficiency and effectiveness.
- The likelihood of significant risks emerging that have not already been identified will be reduced which will help reduce the number of risk events and other control issues that may result in in financial loss, regulatory impact or reputational damage.
- A transparent view of changes in the risk profile will enable the GFSC to become more forward looking and proactive - a key element of risk based regulation which will enable more informed decision making on resource allocation and risk appetite.
- Culturally, it helps embed accountability for managing risk, ensuring risks and mitigating actions are dealt with in a timely manner through improved oversight and accountability and the embedding of good risk management practice.
- It enables Risk Management to perform their oversight responsibilities effectively - an effective separation of risk taking from risk oversight.
The following document is available to download
|Risk Appetite Statements|