INMA S1.4.5 Settlement risk

(1) Settlement risk is the risk of loss resulting from a counterparty not delivering a security (or its value in cash) in accordance with an agreement to do so.
(2) If an INMA firm is likely to be exposed to settlement risk, its risk management policy should include processes and procedures for identifying, assessing, managing and mitigating that risk.
Derived from QFCRA RM/2014-4 (as from 1st January 2015).