ADVOKS GLOBAL · KENYA
The Capital Markets (Corporate Governance) (Market Intermediaries) Regulations
24. Responsibility for risk management
Edition: 2022-12-31 · In force
24. Responsibility for risk management
(1)The board shall be responsible for the development and implementation of the process of risk assessment and management and shall regularly review the effectiveness of the process.(2)The management of a market intermediary shall be accountable to the Board for the designing, implementing, monitoring and integration of the risk management process into the day-to-day business of the market intermediary.(3)The risk assessment process developed under paragraph (2) shall, having regard to the size and nature of operations of a market intermediary, and the extent which the risks may impact on the business of the market intermediary, address—(b)payment systems risks;(c)physical and operational risks;(f)business continuity and disaster recovery;(g)credit and market risks;(j)any other risks that the board considers may be relevant to its business.(4)The board shall, in consultation with the management of a market intermediary, develop and document the risk management policies and processes designed to mitigate the risks to its business.(5)The management of a market intermediary shall—(a)communicate the risk management policies to all employees;(b)maintain back up and contingency plans for dealing with eventualities relating to risks, including catastrophic information technology failure, the loss of records and the loss of access to their business premises;(c)make arrangements for business continuity in the event of the loss of key personnel through illness, resignation or otherwise; and(d)evaluate the contingencies plans on a regular basis.(6)The board shall appoint a risk management officer to—(a)assist the board in the discharge of its duties relating to corporate accountability and risk management, assurance and reporting;(b)review and assess the integrity of the risk control systems and ensure that the risk policies and strategies are effectively managed;(c)define the nature, role, responsibility and authority of the risk management function of the market intermediary;(d)monitor external developments relating to the practice of corporate accountability and the reporting of associated risk, including emerging and prospective impact;(e)provide independent and objective oversight and review of the information presented by management on corporate accountability and specifically associated risk, taking account of risk concerns raised by management at the audit committee meetings on financial, business and strategic risk; and(f)obtain such external or other independent professional advice as he considers necessary to carry out his duties.