Key objectives of risk management:
- to ensure and to maintain KDPW_CCP’s capability of meeting obligations and financial liabilities and achieving the goals of its activity;
- to prevent crises;
- to identify and define solutions ensuring safe operation of KDPW_CCP and meeting of financial liabilities in the event of clearing member default or other crisis.
The risk management system includes:
- risk identification– defining the types of risk, risk factors and significance of risks;
- risk measurement and assessment – defining quantitative and qualitative risk measurement methods/measures, performing relevant tests (including stress-testing, sensitivity analysis, backtesting);
- risk monitoring – controlling the accepted risk level and use of set limits, assessing the effectiveness and adequacy of risk measurement tools and methods;
- risk reporting – presentation of information on the risk profile, identified potential threats and taken preventive actions to relevant entities/units;
- taking mitigating measures – taking measures to mitigate risk (including implementation of regulations, an internal limit system, and risk insurance).