Risk Management

Risk involve in trading at stock markets can be reduced by using some management techniques known as risk management, which includes,

System Audit in stock markets business is done for the purpose of ensuring of working with regulatory authority.
Frequent conduction of audit of brokers in stock markets for confirming about the corporate governance.
Assurance and consulting activities are conducted in Karachi stock exchange.
Audit is done for ensuring about the ethical codes and corporate governance for self regulation.
For improvement in the effective control of current governing and managing procedure in KSE.
These periodic audits are also done for the purpose of getting reports about the law, tax and regulation details in Karachi stock exchange.
These audits help the upper management to develop more efficient internal frame work.
12 month audit plan covers all the important activities conducted in exchange.

For conducting proper audit in Karachi stock exchange corporate governance bodies were established which includes,

10 members for the board of directors.
5 members of directors were elected.
4 non member directors were sent from the SECP, which are associated with the big business industries of the country.
Chairman of the board is elected through the members who are not a part of members of board.