Risk Appetite Statement & Company Values

Ravenscroft is a financial services business with offices in, and a jurisdictional focus on, Guernsey and Jersey.

Our primary objective is to ensure that our clients' wealth is preserved and developed in a sustainable manner. We also aim to minimise both our client and stakeholder risks to the greatest extent possible and strive to achieve this by adopting a prudent and conservative approach to risk-taking. This approach allows us to minimise our exposure to reputational, compliance and financial risks, whilst accepting a degree of other risks in the pursuit of our objectives.

We recognise that our appetite for risk varies according to the business activity undertaken, and that our acceptance of risk is subject always to ensuring that potential benefits are fully understood before any new services or products are made available. At the same time, we seek to implement sensible measures to mitigate the associated risks of such services and products.

Our Group risk appetite is guided by the following principles:

  • We have a lower appetite for investments in high-risk jurisdictions. Our focus is to invest in jurisdictions that have a stable political and economic environment, transparent legal systems, and robust regulatory frameworks. Our investment strategies follow robust processes with clear parameters and strong governance-led oversight. We note that while certain opportunities in high-risk jurisdictions may offer higher returns, they also pose a greater risk to our clients' wealth and businesses reputation.
  • We take a conservative and practical approach to risk management. We believe that risk should be managed in a proactive and systematic manner. We use a combination of real-time qualitative and quantitative analysis to identify and manage all areas of our business’s risks via a Group Risk Committee. Our Risk Management Framework is designed to ensure that risks are easily and quickly identified, assessed, mitigated and monitored in a timely and effective manner.
  • We prioritise the safety and security of our clients' assets. We only work with trusted and recognised third-party banks, custodians and service providers in order to ensure that our clients' assets are held securely and are protected against fraud, theft and other material risks.
  • We strive to maintain a strong financial position within our business and believe that a robust and transparent capital and liquidity policy is essential for maintaining our clients' trust and confidence. We will always maintain sufficient regulatory capital and liquidity to ensure that we can meet our financial obligations, even in times of economic stress.
  • We have zero-risk appetite for cryptocurrencies. While we recognise that these assets may offer potential for higher rates of return, we believe that the risks associated with them are too great for our clients. As such, we do not recommend, or invest, in these assets on behalf of our clients.

Ravenscroft manages its business operations on a reasoned risk and return basis, which serves as a guideline for acceptable credit, market and liquidity risks. We also consider risks related to cyber, climate, regulatory and operational matters in order to provide our clients with the highest levels of service and security.

Our approach to risk is clearly defined and considered within our Strategic Business Plan and key risk documents, including: Business Risk Assessment, Risk Management Framework Assessment, our Compliance Monitoring Plan and Internal Audit Programme.

The Group reviews its risk appetite annually, adjusting it by type of risk and, if appropriate, setting target values for risk‐specific indicators, all in light of the then-prevailing economic cycle and market prospects. The Group’s Board of Directors and its Risk Committee review the top five net risks and their associated controls, as well as any emerging risks, on a quarterly basis and align strategy, process, technology and people in order to improve efficiency and effectiveness. We believe that our approach to risk-taking, coupled with our focus on safety and security, provides our clients with a strong foundation for achieving their investment objectives. Our risk appetite is focused on preserving and growing our clients' wealth in a sustainable manner while minimising risk to the greatest extent possible.

Focus and purpose

  • Ravenscroft’s long-term objective is to be a leading investment services business, with a reputation for exceptional client service and relationships, integrity and accountability.
  • Our ambition is to provide investments for all; from £5k to £500 million and from savings through to private equity.
  • Ravenscroft will achieve this through offering a broad range of investment services to meet clients’ needs and by being friendly, accessible and transparent; enabling clients to understand exactly how investing works, what they are invested into and why.