How Does “Automation” Reduce Operational Risk in Settlement?
Automation reduces operational risk by minimizing the need for manual intervention in repetitive, complex tasks like data entry, reconciliation, and asset transfer. This reduces the potential for human error, increases processing speed, and ensures consistent adherence to predefined rules, thereby improving the reliability and security of the settlement process.
Glossar
Operational Risk
Framework ⎊ Operational risk within cryptocurrency, options trading, and financial derivatives transcends traditional financial definitions, demanding a framework that explicitly incorporates technological, regulatory, and idiosyncratic elements.
Automation
Execution ⎊ Automation within cryptocurrency, options, and derivatives markets signifies the algorithmic implementation of trading strategies, risk management protocols, and operational workflows, moving beyond discretionary decision-making.