• INMA Part S1.2 INMA Part S1.2 Risks to be addressed in risk management policy

    • INMA S1.2.1 Operational risk

      (1) Operational risk is the risk of loss resulting from:
      (a) inadequate or failed internal processes, people and systems; or
      (b) external events.
      (2) The management of operational risk typically addresses legal risk, fraud risk, economic and political risk, business continuity risk, technology risk, human resources risk, outsourcing risk, project management risk and strategic risk.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA S1.2.2 Reputational risk

      (1) Reputational risk is the risk of loss resulting from damage to a firm’s good reputation.
      (2) An INMA firm’s risk management policy should include processes and procedures for identifying, assessing, managing and mitigating reputational risk. The policy should include:
      (a) processes for identifying events that might lead to reputational damage, the likelihood of those events occurring, and their consequences; and
      (b) procedures for handling such events, and for mitigating reputational damage.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015).

    • INMA S1.2.3 Liquidity risk

      (1) Liquidity risk is the risk of not having sufficient cash or liquid assets to meet cash outflows as they fall due.
      (2) An INMA firm's risk management policy should include processes and controls to monitor the liquidity and realisability of the firm's assets and the level of liquid assets it holds, to ensure that it complies at all times with the net liquid assets requirement in these rules.

      Note For that requirement — see rule 3.3.4.
      Derived from QFCRA RM/2014-4 (as from 1st January 2015).