Risk Control Framework

Definition ∞ A risk control framework in the digital asset domain comprises a structured set of policies, procedures, and systems designed to identify, assess, monitor, and mitigate potential risks associated with cryptocurrency operations. This includes addressing market volatility, cybersecurity threats, regulatory non-compliance, operational failures, and counterparty risks. Such frameworks are essential for ensuring the security, stability, and integrity of digital asset businesses and platforms. They aim to safeguard assets and maintain investor confidence.
Context ∞ News often discusses the implementation and effectiveness of risk control frameworks, particularly following security incidents or regulatory enforcement actions against digital asset firms. Institutional investors and traditional financial entities demand robust risk control frameworks before engaging significantly with the crypto market. The continuous refinement of these frameworks is crucial for the maturation and mainstream acceptance of the digital asset industry.