CME Securities Clearing Inc. Proposed Enterprise Risk Management Framework
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This regulation introduces a new framework for CME Securities Clearing Inc. to manage enterprise risks. It outlines a structured approach to identifying, categorizing, and mitigating risks affecting the organization's operations, with specific governance and accountability structures in place.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Introduction of the Enterprise Risk Management Framework
- Establishment of risk governance and accountability
- Implementation of a five-point risk appetite rating system
Obligations
What this law requires
CMESC must implement an Enterprise Risk Management Framework (ERMF) to identify and manage potential threats to its operations and objectives.
The Compliance & ERM team must maintain the Enterprise Risk Management Framework (ERMF) and support the Chief Compliance Officer (CCO) in its implementation.
CMESC personnel must adhere to the risk governance structure defined in the ERMF, including the roles and responsibilities outlined for the three lines of defense model.
The Chief Compliance Officer must recommend the ERMF for annual review to the Risk Management Committee (CSRMC) for approval.
CMESC must conduct annual inherent risk assessments and quarterly residual risk assessments to ensure risks align with the established Risk Appetite.