Risk management
The system for identifying, assessing and managing risks at the NDC.
A central depository is critical market infrastructure: any disruption in its activity affects all market participants. Risk management is therefore an integral part of the NDC’s activity.
Types of risk managed
- Operational risk — the risk of loss resulting from deficiencies in internal processes, human error or system failure;
- Settlement risk — the risk that one of the parties to a transaction fails to meet its obligation;
- Custody risk — risks relating to the integrity of records and the safekeeping of assets;
- Information security risk — threats to the confidentiality, integrity and availability of data;
- Legal and compliance risk — the risk of non-compliance with legal requirements;
- Business continuity risk — the risk of services being interrupted in an emergency.
Management mechanisms
- Regular identification and assessment of risks;
- Segregation of duties and the four-eyes principle;
- Business continuity and recovery plans;
- Data backup and recovery procedures;
- Independent review by internal audit;
- Recording and analysis of incidents.
The risk management policy is approved by the Executive Board and is overseen by the Supervisory Board.