Risk Frameworks

Definition ∞ Risk frameworks are systematic approaches used to identify, assess, mitigate, and monitor various types of risks within an organization or system. They provide a structured methodology for understanding potential threats and implementing controls to manage them effectively. In the digital asset space, these frameworks address market, operational, technological, and regulatory risks inherent to blockchain and cryptocurrency activities. They are essential for sound governance and decision-making.
Context ∞ News often covers the development and implementation of risk frameworks by crypto businesses, regulators, and financial institutions entering the digital asset space. The absence or inadequacy of such frameworks is frequently cited in reports of security breaches or financial instability within the industry. Robust risk frameworks are a critical component for building trust and ensuring long-term viability in the evolving crypto landscape.