Context
The FCA has published its November 2025 Board meeting minutes. There is one item of potential interest to firm, in relation to ‘re-balancing risk’.
Key points to note and next actions
- Under a heading “Strategic discussion: Risk Rebalancing”, the minutes note that the Board received an update on the FCA’s approach to risk rebalancing, noting the importance of reassessing the UK’s collective attitude to risk in the current and future regulatory environment. The Board emphasised that regulation should support informed risk-taking. Members recognised the distinction between rebalancing and shifting risks and highlighted the need for a cultural shift away from viewing risk solely as negative.
- The Board endorsed proposals for the development of an analytical framework to guide policy and rulemaking, ensuring alignment with risk appetite and providing clear parameters for executive decision-making.
- The Board noted that a new Risk Appetite Framework for risks of harm and internal risks had been shared with the Board Risk Committee and that Business planning would include structured reviews of risk acceptance and prioritisation choices. When developing future rules, the application of the framework in determining risk appetite would be explained. Communication plans would highlight examples of risk rebalancing in the Annual Report.