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• Reviewed the methodology to calculate the risk
value in the clearing and settlement system in
compliance with international standard and clearing
houses in other countries by using volatility of prices
at the confidence level of 99% from the previous
97.5%.
TCH also reviewed types of membership, making
it consistent with those of clearing houses in other
countries by changing “Associate Member” to
“Settlement Agent”.
Critical system disruption risk
SET constantly assesses, monitors and manages
risks that may seriously affect its computer systems.
These include standard incident management,
escalation procedures, incident reports, root cause
analysis and solution-finding in order to provide
continuous service.
Business interruption risk
SET has a highly efficient business continuity plan
(BCP) to ensure that its missions and critical business
activities can be carried out without interruption in the
event of unexpected crises. In addition, BCP-related
documentation is regularly reviewed and updated. SET
continues to conduct annual BCP exercises for all other
stakeholders in the Thai capital market to validate
SET’s adequacy and readiness.
In 2014, SET activated BCP during the political
unrest, as such and the securities trading system
kept operating as usual. This has proved the quality
and effectiveness of SET’s management of business
interruption risk in accordance with international
standards.
Investment risk
SET’s investment portfolio, managed by the
Investment Committee (IC), operates under investment
and strategic asset allocation policies as approved
by the SET Board of Governors (BoG). These policies
are reviewed quarterly.
SET monitors the investment risk status of its
portfolio using value-at-risk technique to ensure that
aggregate portfolio risk is within the limit structure and
then reports to the BoG, Risk Management Committee
and IC to ensure that risks are within acceptable levels.
Compliance risk
SET assesses, oversees, monitors and manages
compliance risk, which covers the dangers of violating
rules or regulations of internal and external parties,
such as approval and/or signing authority of various
management levels. It is of utmost importance that
SET strictly complies with all laws and regulations.
Process risk
SET process risk management covers risks at
the process level, covering those cases resulting from
insufficient internal controls and all types of errors in
using people, internal processes or technology. All units
assess their risks and adequacy of internal controls
using the Risk and Control Self-assessment (RCSA).
Each unit then formulates their action plan and moni-
tors implementation on a regular basis.