Risk Management

Generally Accepted Principles and Practices for Sovereign Wealth Funds (“Santiago Principles”)

The purpose of the Santiago Principles is to identify a framework of generally accepted principles and practices that properly reflect appropriate governance and accountability arrangements as well as the conduct of investment practices by SWFs on a prudent and sound basis.

Principles for Sound Liquidity Risk Management and Supervision

This document expanded the 2000 Sound Practices for Managing Liquidity in Banking Organisations in a number of key areas by taking into account financial market developments as well as lessons learned from the turmoil.

Credit Risk Transfer

The documents review credit risk transfer (CRT) activity on the basis of a number of interviews and discussions with market participants, and include recommendations to improve risk management practices, disclosure, and supervisory approaches for CRT.

Code of Conduct Fundamentals for Credit Ratings Agencies

Following publication of the CRA Principles, IOSCO decided to develop a more specific and detailed code of conduct giving guidance on how the Principles could be implemented in practice. This Code of Conduct Fundamentals for Credit Rating Agencies is the fruition of this exercise.

Principles for home-host supervisory cooperation and allocation mechanisms in the context of Advanced Measurement Approaches (AMA)

This document sets out principles related to two important topics in the implementation of the Advanced Measurement Approaches (AMA) for operational risk under Basel II.

High-Level Principles for Business Continuity

The document outlines business continuity principles that apply to industry participants and financial authorities.

Compliance Function at Market Intermediaries

This document sets out principles with measures for implementation to assist market intermediaries to increase the effectiveness of their compliance function.

Guidance on the estimation of loss given default (Reference to Paragraph 468 of the Basel II framework)

This document provides further clarification surrounding the quantification of loss-given-default (LGD) parameters used for Pillar 1 capital calculations.This guidance is not intended to amend the Revised Basel II Framework Document issued in June 2004 or to introduce any new rules.

Principles on Client Identification and Beneficial Ownership for the Securities Industry

These Principles are formulated in relation to client identification and beneficial ownership for the securities industry. The Client Due Diligence (CDD) process is a key component of securities regulatory requirements intended to achieve the principal objectives of securities regulation, the protection of investors; ensuring that markets are fair, efficient and transparent; and the prevention of the illegal use of the securities industry.

IOSCO Statement Of Principles Regarding The Activities Of Credit Rating Agencies

This document sets out principles for the activities of credit rating agencies (CRAs).

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