In line with the objectives of reducing systemic risk and bringing stability to the securities markets as spelt out in the Securities Act (Chapter 24:25) the Securities and Exchange Commission of Zimbabwe has put in place a centralised and harmonised risk surveillance and monitoring framework. The framework is premised on centralised risk data collection and is the basis for its risk based supervision of the various players in the securities markets. Whilst the prerogative for day to day risk management (identification, assessment, mitigation and monitoring and reporting) lies with the individual players in the securities markets the commission plays a critical oversight role in order the guard against the systemic effect (systemic risk) and guiding market players in effectively managing their individual risk profiles.

Because of the integrated nature of the whole financial system, the Commission harmonises the risk management practices with other financial subsystems and also regional and international practices. Key focus of this framework is on the following risks which have a potential contagion effect:

  1. Operational Risk
  2. Compliance Risk
  3. Market Risk
  4. Liquidity Risk
  5. Settlement Risk