Risk culture and appetite emphasised in MFSA drive

The Malta Financial Services Authority has released a Risk Culture and Risk Appetite Statements as part of its drive to place risk management at the centre of its strategy.

The MFSA’s Risk Culture Statement provides guidance in relation to best practice and implementation of the MFSA’s Risk Culture change programme, whilst the Risk Appetite Statement sets boundaries of acceptable levels of risk in key areas of the Authority’s activities as a financial services supervisor.

“To better serve our role as the single regulator of financial services in Malta, we are working towards this transformation by incorporating a risk-based approach as we look to improve resiliency, enhance operational and supervisory effectiveness and address our strategic priorities. To transform our risk culture, we must ingrain a risk-focused mindset into the Authority’s activities,” said the MFSA’s Chief Executive Officer, Joseph Cuschieri.

“The MFSA’s Risk Appetite Statement is an important step towards a sounder and more transparent risk management strategy for our Authority,” said the MFSA’s Head of Risk, Franco Borg.