To ensure that it can manage risk effectively, the Stock Exchange of Thailand uses an enterprise-wide risk management framework consisting of risk identification, risk assessment, risk reduction, and risk monitoring. SET’s risk management covers three levels of key risks
Business Risk – Key business risks are:
Credit risk (Counterparty or clearing and settlement-related risk)
Business interruption risk
Management identifies and assesses risks in accordance with specified criteria, provides measures to manage the risk within an acceptable level, and monitors as well as reports the risk status. In addition, management regularly reviews the effectiveness and efficiency of mitigation measures to ensure that SET can handle risk incidents in a timely manner.
The Risk Management Department coordinates with management in implementing the risk management policy. Regular risk monitoring and status reports are provided executives and the Risk Management Committee monthly, and the Board of Governors quarterly; in addition, risk management operations reports are given the Audit Committee and the Board of Governors quarterly. Importantly, executives and employees are continuously inculcated with the importance of risk management.