IFCI RISK INSTITUTE

Key Risk Concepts

Sources of Risk

The principle sources of risk which concern regulators.

  • Overview: Credit Risk
  • Overview: Settlement Risk
  • Overview: Market Risk
  • Overview: Other Risks

    Public Policy Objectives

    It is generally accepted that financial markets require official regulation because there are legitimate public policy concerns which cannot be adequately addressed by the market itself. While it is possible to set out these public policy objectives under these three distinct headings, it is important to recognise that there is a significant interaction between them. Thus issues related to market integrity and customer protection have implications for systemic safety, and vice versa.

  • Overview: Systemic Safety
  • Overview: Market Integrity
  • Overview: Customer Protection

    Risk Mitigation

    The main techniques which regulators use to protect against the risks of problems in the financial markets.

  • Overview: Risk Control
  • Overview: Capital Adequacy
  • Overview: Regulatory Co-operation
  • Overview: Sales Practices
  • Overview: Netting and Insolvency
  • Overview: Accounting and Disclosure

    • The regulatory documents which have been assembled on the IFCI regulatory database deal with financial risks. Key Risk Concepts attempts to impose a logical order on this wide universe of on-line regulatory documents. The framework we have designed will help the user understand financial risks and the purpose and objectives of this database.

    The framework, consisting of 13 key risk concepts, is structured around the following three questions:

    • What are risks about which regulators are worried, i.e. sources of risk?
    • Why are the regulators concerned about these risks, i.e. what are the public policy concerns?
    • What techniques are available to regulators to address these concerns, i.e. what are the risk mitigation techniques?
    There will be an overview to each of the 13 key risk concepts. Each overview will define the risk concept, list its main points and most important of all, highlight the most relevant documents on the database. There will also be a summary of every report which has been singled out.

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