Financial Crime World

Austria’s Financial Institution Risk Management Frameworks Stand Out Amidst European Uncertainty

As the global financial landscape remains uncertain, Austria’s financial institution risk management frameworks are garnering attention for their comprehensive approach to mitigating operational risks.

Cutting-Edge Framework

The Federation of Clearing and Settlement Systems (fCCPA) has implemented a cutting-edge framework that combines preventive measures with business contingency planning and testing. At the heart of fCCPA’s strategy is its operational risk management, which covers:

  • IT-related risks: Robust backup systems ensure that critical functions can recover within two hours in the event of an incident, minimizing data loss to almost zero.
  • External events: Regular monitoring and planning for external events such as natural disasters or cyber-attacks ensure business continuity.
  • Internal processes: fCCPA has implemented robust internal controls to mitigate operational risks.
  • Human resources: Training programs are in place to ensure that employees are equipped to handle unexpected situations.

Comprehensive Business Continuity Management Framework

To further ensure business continuity, fCCPA has established a comprehensive business continuity management framework, complying with:

  • EMIR regulations
  • RTS 153/2013

Regular testing and maintenance guarantee that core functions are preserved, operations are recovered promptly, and obligations are fulfilled.

Proactive Measures

In addition to these measures, fCCPA takes proactive steps to reduce the impact of operational risks on its business processes. These include:

  • Minimum requirements: Setting minimum requirements for clearing systems, clearing operations, IT workstations, information security, and internal controls to mitigate potential damage or probability of occurrence.
  • Risk assessment: Conducting regular risk assessments to identify potential threats and develop strategies to mitigate them.

Model for Other Institutions

As Austria’s financial sector continues to evolve, fCCPA’s risk management framework serves as a model for other institutions in the region. By prioritizing proactive measures and rigorous testing, fCCPA is well-equipped to navigate the challenges of an ever- changing global economy.