Enterprise Risk Appetite Statement

The Isle of Man Financial Services Authority has today, Tuesday 4 July 2023, published its Enterprise Risk Appetite Statement (‘ERAS’).

The ERAS, which replaces the previously published Enterprise Risk Tolerance Statement, sets out the internal risks that the Authority is willing to accept in the pursuit of its objectives of protecting consumers, reducing financial crime and maintaining confidence in the financial services sector.

The update in approach focuses on the internal risks facing the Authority and supports our commitment to continual development and enhancement.

How the Authority assesses and responds to external risks, such as prudential risk or conduct risk which are presented by and are the responsibility of regulated entities, is captured in the updated Supervisory Methodology Framework.

The ERAS explains how the Authority identifies and manages different categories of risk to ensure our resources are deployed in the most appropriate and efficient way.

It supplements the wider Enterprise Risk Management (“ERM”) toolkit and provides enhanced assurance to the Authority’s Board of the risk and control environment.

What has changed?

• The ERAS has an internal focus on risks facing the Authority
• The revision of risk categories aligns with the Authority’s objectives and key goals
• The ERAS format is intended to provide greater clarity and understanding

By publishing the ERAS, the Authority aims to provide stakeholders with clarity regarding our approach, as part of the overall commitment to openness and transparency.

The ERAS will be reviewed annually and updates published on the Authority’s website.

Should you have any queries regarding the ERAS, please contact us at info@iomfsa.im