Embed risk-focused choices throughout our work

Since the end of 2019, we've had a working risk system in place. It has already started to change the way we supervise by ensuring risk is the central focus of everything we do. It also means we can concentrate our resources on the activities that pose the greatest risk to Jersey’s finance industry, reputation and community.

In 2020, we rolled out further improvements to our risk model and, in 2021, we will complete a range of initiatives started in 2020 to get better at factoring probability into our risk assessments, take stock and plan how we will enhance the system further in 2022.

Developing our risk systems across all our activities by:

• Improving the way we collect and analyse AML/CFT data to assess our supervisory effectiveness
• Continuing to build statistical evidence regarding the risk profile of the financial services industry
• Extending the alignment of our supervisory engagement with our risk model recommendations, focusing on areas of highest risk
• Using the insights provided by our risk model to better understand risk and sharpen our risk assessments
• Opening up new forms of risk assessment to continue the improvements to our risk model
• Developing the work we are already doing with our risk model to understand, monitor and assess regulated businesses from when they are licenced to when they cease to operate
• Using reporting to provide a multi-layered view of regulated businesses and our own effectiveness
• Assessing the requirements for our risk model and designing further refinements to be delivered in the two final years of our strategic roadmap.

Using data more effectively to inform our decisions by:

• Embedding a data strategy that will shape the future of regulation
• Using automated data led risk assessments to identify new areas of risk.

Managing the regulatory risk of innovation by:

• Leveraging the knowledge and experiences of other supervisory authorities through more international cooperation
• Liaising with Digital Jersey on FinTech
• Developing our increasingly coordinated approach to risk-assessing innovative business proposals across the organisation.