Governance and Risk Controls

Definition ∞ Governance and risk controls comprise the frameworks, processes, and structures implemented by organizations to direct and oversee their operations, ensuring accountability and managing potential adverse events. Governance establishes decision-making authority and responsibility, while risk controls identify, assess, and mitigate various financial, operational, and compliance risks. These elements collectively support the achievement of organizational objectives while safeguarding assets. They are fundamental for sound institutional management.
Context ∞ In the digital asset and blockchain space, effective governance and risk controls are paramount for maintaining the integrity and stability of decentralized protocols and centralized crypto entities. Regulators increasingly focus on these aspects, particularly for stablecoin issuers and digital asset service providers, to ensure consumer protection and market stability. News often highlights discussions around improving these controls to address the unique challenges presented by decentralized systems.