This entry, which describes an external link, was imported from my old website which is now defunct. I’ve therefore given it an artificial post date of 1 August 2002.
The Financial Services Authority have issued a series of reports outlining their new risk-based regulatory framework. This report, issued in February 2002, describes their risk-based operating framework and what it means for the firms that they regulate. In particular, it includes (as Appendix B) a probability assessment matrix that provides the risk classification system that they use. Note that the FSA is interested only in risks to their statutory objectives, and that these may not be the same as, for example, risks to shareholder value. The report is available at http://www.fsa.gov.uk/pubs/policy/bnr_progress2.pdf.