Operational risk controls are measures implemented to reduce losses from internal process failures or external events. These controls include policies, procedures, systems, and personnel designed to mitigate risks arising from human error, system malfunctions, fraud, or cybersecurity breaches. In the digital asset space, they are crucial for protecting client funds, maintaining system uptime, and ensuring data integrity. Robust operational risk controls are essential for the safe and reliable functioning of digital asset platforms and services.
Context
Operational risk controls are a recurring theme in crypto news, particularly after incidents involving hacks, system outages, or mismanagement at digital asset firms. Regulators and institutional investors place increasing emphasis on these controls as a prerequisite for market participation and licensing. The development and implementation of advanced cybersecurity measures, multi-signature protocols, and clear incident response plans are critical areas of focus for enhancing the resilience of the digital asset industry.
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