Systems and Controls
RM-1.1.6
The risk management framework of
licensees must provide for the establishment and maintenance of effective systems and controls as are appropriate to their business, so as to identify, measure, monitor and manage risks.October 2010RM-1.1.7
An effective framework for risk management should include systems to identify, measure, monitor and control all major risks on an on-going basis. The risk management systems should be approved and periodically reviewed by the Board as outlined in HC-1.1.5.
October 2010RM-1.1.8
The systems and controls required by Paragraph RM-1.1.6 must be proportionate to the nature, scale and complexity of the firm's activities.
October 2010RM-1.1.9
The processes and systems required must enable the
licensee to identify the major sources of risk to its ability to meet its liabilities as they fall due, which include but are not limited to the following:(a) Counterparty Risk;(b) Liquidity Risk;(c) Market Risk; and(d) Operational Risk.October 2010
