The Financial Services Authority (FSA) today published its Financial Risk Outlook (FRO) warning firms and consumers of the risks inherent in a significantly less benign economic environment. Its central scenario identifies the following five priority risks: * Existing business models of some financial institutions are under strain as a result of adverse market conditions; * Increased financial pressures may lead to financial firms shifting their efforts away from focusing on conduct of business requirements and from maintaining and strengthening business-as-usual processes; * Market participants and consumers may lose confidence in financial institutions and in the authorities’ ability to safeguard the financial system; * A significant minority of consumers could experience financial problems because of their high levels of borrowing; * Tighter economic conditions could increase the incidence or discovery of some types of financial crime or lead to firms’ resources being diverted away from tackling financial crime.