RISK and RECOVERY Management Task Force Convener: Arif Ahmed, Central Depository Company of Pakistan Limited

The World’s Most Ancient Way of Risk Management

Song Dynasty - 2 nd Millennia BC Chinese Merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing.

The World’s Most Modern Way of Risk Management

BURJ KHALIFA - Dubai, the World’s Tallest Man-Made structure and its Safety Standards Burj Khalifa is highly compartmentalized. Pressurized, air-conditioned refuge floors are located approximately every 25 floors where people can shelter on their long walk down to safety in case of an emergency or fire. Fire safety and speed of evacuation were prime factors in the design of Burj Khalifa.

Recent Example of Recovery Management One of the wonders of the world and a UNESCO World Heritage Site, Taj Mahal was built in the 17 th century in Agra, India by a Mughal emperor.

TAJ MAHAL and Its Preservation In the early 1990s, threats were identified by experts that toxic fumes from factories were causing the Taj Mahal’s marble to decay. The Supreme Court of India ordered the closure of more than 200 illegal industrial plants. A Taj Trapezium buffer zone of an area of 10,400 sq km was also established around the Taj Mahal to protect it from pollution. Law prohibits the construction of industrial plants and supports the planting of trees and shrubs.

We all know that Stock Market is a RISKY business

Volatility & Uncertainty Highly dependable external factors like war, political situation, security conditions, natural disasters, currency devaluation, tax implications, sanctions, etc. Rumor Mongering Domino Effect Risks that involve…

CHALLENGES in terms of: Revenue Management Human Resource Management IT & Infrastructure Management Strategic Planning Impact on CSDs and other Stock Market institutions

Hedging Risk To hedge the risk of boom and busts, CSDs take some a number of steps which include: Business Diversification Capital Adequacy Depository Risk Insurance Investor Protection Investor Controls Compliance & Surveillance Risk-Based Planning Cost Controlling Spread Tariff

Risk & Recovery Management Task Force The Risk & Recovery Management Task Force is set up to facilitate ACG Members to share experiences, information and processes involved in potential risks, to analyze them and precautionary steps to curb the risk and its effective recovery methodology.

RRM Task Force Members 1. Japan Securities Depository Center, Inc. (JASDEC) 2. Central Securities Depository of Iran 3. China Securities Depository and Clearing Corporation Limited 4. CDS and Clearing Limited (Nepal) 5. The State Enterprise "Central Securities Depository" (UzCSD), Uzbekistan 6. Central Depository Systems (Pvt.) Ltd, Subsidiary of Colombo Stock Exchange, Sri Lanka 7. Korea Securities Depository (KSD) 8. National Securities Depository Limited (NSDL), India 9. Central Depository Services (India) Limited 10. Central Depository Bangladesh Limited 11. Mongolian Securities Clearing House and Central Depository 12. PT Kustodian Sentral Efek Indonesia KSEI 13. Central Depository Company of Pakistan Limited