ABSTRACT

Risks within business must be managed, both those risks that are already well known and accepted as part and parcel of business practice and those that are newly arising, or indeed newly recognised. As a further consequence of our collective experience of recent years, the management of risk within business (both from a regulatory and a business standpoint, and at both an international and local level) has become increasingly accepted as being invaluable to the effective operation of the overall business environment. Risk management is now firmly established as a vital component of good business practice. For regulators and those subject to regulation, greater recognition of the interconnected nature of the markets has brought with it improved respect for the role regulation plays, or ought to play, within those markets. However, an inevitable outcome of this is an awareness of the need for enhanced focus on the effective management of risks relating to regulation and thus greater focus on regulatory risk in its entirety.