IMC Annual Report 2018 - Page 38



IMC RISK PROCESS
GOVERNANCE
M
STRATEGY
APPROVAL PROCESS
RISK AND CONTROL
SELF-ASSESSMENT
RISK TOLERANCE
CAPITAL MANAGEMENT
INTERNAL AND
EXTERNAL AUDITS
RT
REPO
&
R
ITO
N
O
RISK
TOLERANCE
LOCAL AND GLOBAL
RISK COMMITTEE
ASSURANCE
COMMITTEE
IDEN
TIFY
CAPITAL
IMC Risk Process
MIT
IGAT
E
SS
ASSE
IMC’s risk framework is based on
AREAS OF RISK
MARKET, CREDIT,
AND LIQUIDITY RISK
Sensitivity analysis
Stress testing
Limit framework
Counterparty analysis
Intraday monitoring
38
OPERATIONAL RISK
COMPLIANCE
Pre and post trade risk controls
Policies, procedures, standards
Quality assurance
Monitoring, incident
management and response
External event analysis
Risk assessments
Regulatory affairs
Trading surveillance
Policies, procedures, standards
Risk assessments
Training and education
INFORMATION
SECURITY
Identity and access management
Network and systems security
Policies, procedures, standards
Awareness and training
Monitoring, incident
management and response

Determining adequate

(Intra-day) monitoring
enterprise-wide risk management,
controls to mitigate the risks
of important risk issues
and can be divided in four main
to acceptable tolerance levels;
and reporting to relevant
building blocks: (A) Market,
Examples of key controls are
stakeholders. The risk and
credit and liquidity risk, (B)
the global limit structure to
compliance teams have
Operational risk, (C) Compliance
limit exposure to all relevant
several (intra-day) monitoring
and (D) Information security. Risk
market factors, IMC’s software
tools in place to keep track
appetite and tolerance levels are
development and change
of relevant risks.
defined for the main types of
management process,
risk. Management of these risks
a comprehensive set of
consists of a continuous cycle of:
pre-trade and post-trade
is developed to create risk
system safety limits to control
reports to several layers of
Identifying and assessing
risks around execution of
relevant stakeholders to make
risks by using risk
trades, surveillance of trading
sure information is shared.
assessments; all relevant risks
activity and an incident
are defined and assessed
database to identify, file
using impact and likelihood.
and analyse incident(s).


A detailed reporting framework
IMC Annual Report 2018
39

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