On 11 November 2011, the Executive Board passed a resolution to establish the Risk Management Committee of NSD’s Executive Board (the “Committee”).
The Committee is responsible for the following functions:
- making recommendations for distribution of powers and responsibilities in the area of risk management among the heads of NSD’s departments and divisions to ensure compliance with the key risk management principles;
- making recommendations in respect to internal regulatory documents setting forth risk management rules and procedures to be submitted to NSD’s Executive Board for consideration;
- making recommendations as to the frequency of assessing various risks affecting NSD;
- making proposals to enhance risk management practices;
- making proposals in respect to an emergency plan, analyzing crisis scenarios, and initiating corrective measures as needed;
- monitoring procedures implemented by NSD with a view to identify, assess and reduce risks affecting NSD;
- promptly assessing circumstances that may pose threat to customers or adversely affect NSD’s financial strength or reputation, identifying their causes, and making recommendations to mitigate their impact;
- identifying risk factors unacceptable to NSD and making recommendations to mitigate the same;
- monitoring the level of external and internal risks, and making recommendations as to how to respond to an increase in risks; and
- recommending adequate risk management measures.