As a systemically important FMI, Euroclear prepares recovery, restructuring and orderly wind-down (RRW) plans for all (I)CSDs of the group. Building on the wider risk framework, each entity's RRW plan aims to assist its management in taking timely and appropriate actions should that entity face a situation that threatened its financial viability and its ability to continue to provide critical market services.
In particular, each entity's RRW plan outlines:
- capabilities and operational options to manage the stressed situation;
- information around the sources of residual risk and recovery scenarios; and
- governance mechanisms as well as the systematic review, testing and refinement of the plans.
The preparation of such RRW plans is coordinated by Risk Management, based on input from across the group. The RRW plan is reviewed annually or when a significant change occurs that would impact the feasibility or materiality of a recovery option. In accordance with regulatory requirements, the plans are shared with relevant authorities.
