Professor Martin Lodge Regulators and Risk Appetite

Regulators are supposed to be risk-based in their approach. Risk appetite plays a central role in any risk-based approach - as it supposedly guides understanding as to what risks a regulator is willing to hold. The setting and updating of a regulator’s risk appetite raises a range of challenges: How do regulators set their risk appetite? How is such risk appetite setting affected by settings where regulatory authority might be dispersed? How much risk are different parts of a regulatory agency willing to hold and how are different interpretations mediated? Addressing these challenges is central for any regulatory agency - and also highlights the inherent risks of risk-based regulation more generally. Professor Lodge will consider these challenges by drawing on his research on British regulatory agencies.
Facilitator: Dr Lorraine Cherney
Speaker: Professor Martin Lodge