SET CG Principles
Enterprise Risk Management (ERM)
The Stock Exchange of Thailand (SET) uses an enterprise-wide risk management framework, consisting of risk identification, risk assessment, risk treatment and risk monitoring to handle key risks of the organization. SET’s risk management covers three levels of key risks
- Strategic Risk
- Business Risk – Key business risks are:
- Credit risk (Counterparty or clearing and settlement-related risk)
- IT risk
- Business interruption risk
- Investment risk
- Compliance risk
- Process Risk
Management identifies, assesses risk in accordance with specified criteria, provides measures to manage the risk within the acceptable level, and monitors as well as reports the risk status. In addition, management regularly reviews the adequacy and efficient mitigation measures to ensure that SET can handle incidents in timely manner.
Risk Management Department coordinates and facilitates management in implementing the risk management according to the assigned policy, including regularly monitors and reports on risk status to executives and Risk Management Committee monthly and the Board of Governor quarterly, as well as reports on risk management operations to the Audit Committee and the Board of Governor quarterly, and continually inculcates risk management culture to the executives and employees.