Risk Management

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

  • Audit and internal compliance process
  • Corporate governance

AUDIT AND INTERNAL COMPLIANCE PROCESS

  • 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.

CORPORATE GOVERNANCE

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.
Top