Regulators must balance different objectives and duties when they exercise their functions. This means that they balance risks and manage the associated trade-offs. In practice, this may involve accepting a higher level of risk in some areas based on potential benefits in others. For example, a decision by financial regulators to relax affordability standards for mortgages could help more people purchase a home, but would mean 6 C&AG’s report, Figure 2 7 C&AGs’ report, para 1.6 8 Committee of Public Accounts, Regulating for growth - Committees - UK Parliament 7 accepting a higher risk of home repossessions and consumer distress.9 HM Treasury called for regulators to be less risk averse in the March 2025 Action Plan.10