Ongoing Risk Analysis
DFSAconducts an ongoing analysis of risks relating to each Authorised Firm, although the information required may vary from firm to firm. Authorised Firmswith a higher risk classification may be subject to closer regulatory attention and would typically be subject to supervisory reviews specifically designed to address particular causes of risk.
Authorised Firmswill be subject to an individual on-site risk assessment, except where more than one Authorised Firmbelongs to the same Group, in which case the DFSAmay decide to carry out a Grouprisk assessment.
The risk assessment process is ongoing and it is expected that the risks of each
Authorised Firmmay be reviewed on at least an annual basis. Notifications, reporting of information, an on-going dialogue with senior management and visits to the Authorised Firmwill ensure that the DFSAhas current information on key risk areas of the Authorised Firm.
There are also a number of trigger events which may affect the frequency of a risk assessment and the
Authorised Firm'soverall risk classification. Examples include:(a) a notification from a non-DIFC regulator or other authority of an issue concerning the Authorised Firmor its Group;(b) a material change in an Authorised Firm'sbusiness and new business activities;(c) a change in the Authorised Firm's Controllers;(d) an Authorised Firm'sdevelopment of high risk products or business lines;(e) an Authorised Firm'sdevelopment of business areas with characteristics such as unusual profitability;(f) an Authorised Firm'sappointment of new personnel in key business areas;(g) an Authorised Firm'sacquisition of new or revised information systems or new technology;(h) a rapid growth in specific areas of activity of an Authorised Firm;(i) an Authorised Firm'scorporate restructuring, merger or acquisitions;(j) an Authorised Firm'sexpansion or acquisition of non-DIFC operations including the impact of changes in related economic and regulatory environments; or(k) the DFSA'sresponse to industry-wide concerns or themes.