The risk management framework must in the case of the central counterparty’s exposure to business risk, enable the central counterparty to—
| (a) | identify and assess the sources of business risk and their potential impact on operations and functions of the central counterparty, taking into account past loss events and financial projections; |
| (b) | assess and thoroughly understand its business risk and the potential effect that this risk could have on its cash flows, liquidity, and capital positions; |
| (c) | clearly understand its general business risk profile so that it is able to assess its ability either to— |
| (i) | avoid, reduce, or transfer specific business risks; or |
| (ii) | accept and manage those risks; |
| (d) | measure and monitor business risks on an on-going basis and develop appropriate information technology systems as part of its risk management framework; |
| (e) | minimise and mitigate the probability of business-related losses and their impact on its operations across a range of adverse business and market conditions, including the scenario that its viability as a going concern is questioned; and |
| (f) | address unforeseen and potentially uncovered liquidity shortfalls to avoid unwinding, revoking or delaying the same-day settlement of payment obligations and provide for a process to replenish any liquidity resources it may employ during a stress event. |
