NYSE Risk Group

The Risk Group has two core missions:

• to assess internal risks related to surveillances and other processes performed by various divisions of NYSE Regulation, and
• to identify, describe, and analyze market and industry developments that could have an adverse impact on the operation or reputation of NYSE Group markets and NYSE Regulation.

These missions are carried out through the Risk Group’s three part program of:

• surveillance risk assessment reviews
• internal risk assessment reviews of NYSE Regulation divisions, departments, and processes, and
• forward-looking reviews of external risks that could have an adverse impact on the reputation or operation of NYSE markets and NYSE Regulation.

Areas of focus include:

Surveillance Reviews: assess and monitor the quality and effectiveness of surveillances and surveillance programs for the NYSE Market Surveillance division (MKS ) and for NYSE Arca Equities/Options. This includes a review of surveillance logic, design, and procedures as well as ongoing assessment of the impact of changes in business practices, regulation, technology, and markets. The Risk Group also notes potential gaps and risks that can be addressed by action plans that have been developed by the surveillance owner.

Internal Risk Assessments: assess the efficacy of various activities, programs, and processes of the departments and/or divisions of NYSE Regulation.

Business Process and Technology: reviews business processes and technology, and conducts process flow and gap analyses to identify potential process improvements as well as gaps and risks.

Development of Action Plans: works with the business owner to develop action plans to address identified gaps and mitigate potential risks. 

Emerging External Risks: monitor and identify emerging external risks that could have an adverse impact on the operation or reputation of NYSE Group markets and NYSE Regulation. The group consults regularly with its Risk Advisory Committee, composed of representatives from various segments of the financial services industry, to monitor external risks. It assesses mitigation of identified risks through outreach to the industry and conducting industry surveys on selected topics with other regulators. The group coordinates external risk reviews with other regulators and self-regulatory organizations through regular meetings with the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority.  In addition, Risk Group management attends and presents at other industry committee meetings.