The Commission uses a risk based approach to the supervision of licensees which is underpinned by a system known as PRISM (Probability Risk and Impact SysteM). It is a structured system which enables us to focus our finite supervisory resources on high value, forward-looking, supervisory activity with a strong emphasis on the business models and governance of the most significant licensees in the Bailiwick. It requires our supervisors to challenge, to make judgements and to mitigate unacceptable risks – prudential, financial crime or conduct-related. PRISM helps us ensure that we anticipate and address problems before they become crises. However, it is not a panacea and there will still be licensee failures.
