Leverpay’s Risk Assessment Policies
1. Introduction
a. The purpose of this risk assessment policy is to identify, assess, and manage risks associated with operating a stablecoin-backed payment solution company.
b. This policy aims to provide guidelines for conducting risk assessments, implementing risk mitigation measures, and ensuring regulatory compliance.
2. Risk Identification
a. Leverpay regularly review and assess the potential risks associated with cryptocurrency market trends and stablecoin operations, including technological, operational, financial, legal, and regulatory risks.
b. Identify internal and external factors that could pose risks to the company, such as cybersecurity threats, market volatility, regulatory changes, or fraudulent activities.
3. Risk Assessment Process
a. We have establish a formal risk assessment process to evaluate the severity and likelihood of identified risks.
b. We assign responsibilities to qualified individuals (risk analysts) or teams within our company to conduct risk assessments.
c. We ensure to consider both quantitative and qualitative factors when assessing risks, including historical data, industry best practices, expert opinions, and internal analysis.
d. We rate risks based on their potential impact and likelihood of occurrence, categorizing them into high, medium, or low risk levels.
4. Risk Mitigation Strategies
The following are our mitigation strategies:
a. We implement appropriate risk mitigation strategies based on the identified risks and their severity.
b. We establish controls and safeguards to mitigate operational risks, including robust internal processes, secure technology infrastructure, and disaster recovery plans.
c. Implement effective cybersecurity measures to protect against hacking, data breaches, and unauthorized access.
d. Ensure compliance with relevant regulations and industry standards to mitigate legal and regulatory risks.
e. Remit payment to merchants in a timely manner (Within a 24-hour window) to reduce exposure to market volatility.
f. Establish clear policies and procedures for customer onboarding, identity verification, and fraud prevention.
5. Risk Monitoring and Reporting
The following are our mitigation strategies:
a. Continuously monitor and review risks, regularly updating risk assessments as new risks emerge or existing risks change.
b. Establish mechanisms for ongoing risk reporting to senior management, including regular risk status updates, trend analysis, and key risk indicators.
c. Foster a culture of risk awareness and reporting among employees, encouraging them to report any potential risks or vulnerabilities they identify.
6. Regulatory Compliance
a. Stay informed about changes in cryptocurrency regulations and ensure compliance with applicable laws and regulations in all jurisdictions where we operate.
b. Designate a compliance officer responsible for monitoring and ensuring adherence to regulatory requirements.
c. Keep upated by working with government security agencies to stay informed on the latest threats and industry trends.
d. Implement robust know-your-customer (KYC) and anti-money laundering (AML) procedures to prevent illicit activities and comply with regulatory obligations.
7. Business Continuity and Disaster Recovery
a. Develop and maintain a comprehensive business continuity plan that outlines procedures for mitigating risks and recovering operations in the event of disruptions or disasters.
b. Regularly test and update the business continuity plan to ensure its effectiveness.
c. Establish backup and recovery mechanisms for critical data and infrastructure to minimize the impact of potential disruptions.
8. Training and Awareness
a. We provide regular training and awareness programs to educate employees about potential risks associated with cryptocurrency operations and the company's risk management policies and procedures.
b. Foster a risk-aware culture where our employees understand their roles and responsibilities in identifying, reporting, and mitigating risks.
9. Regular Review and Update
a. We conduct periodic reviews of the risk assessment policies to incorporate changes in the business environment, emerging risks, or regulatory requirements.
b. Engage external experts or consultants, if necessary, to ensure the risk assessment policies remain effective and up to date.
