- Market Risk: Being prone to unexpected change in the value of financial instruments such as
Singapore’s financial sector is renowned for its robustness, innovation and global connectivity. As a hub for international finance, it offers brokers a dynamic environment to operate in, but it also presents unique challenges, particularly in risk management. Brokers must navigate market volatility, regulatory complexities and client expectations while ensuring the stability and growth of their operations.
The Importance of Risk Management for Brokers
Risk management is a part of every aspect that is bound to change the fortune of a company and brokers, in particular, owe it to their clients to manage them well. A broker has to understand his clientele and serve as a link between them and the financial market; hence, looking after the clients’ funds and meeting regulatory compliance conditions becomes paramount. Brokers in Singapore have to deal with a myriad of risks because their market is highly competitive and dynamic:
