The risk management framework of category 4 investment firms must provide for the establishment and maintenance of effective systems and controls including Board approved policies that enable the licensee to identify, measure, monitor and manage the major sources of risk arising from its own books and those arising from the CIU it operates in each of the following categories:
(a) Counterparty risk;
(b) Market risk;
(c) Liquidity risk;
(d) Operational risk (including where relevant cyber security risk);
(e) Outsourcing Risk; and
(f) Any additional categories relevant to its business.
Added: January 2022
