Risk based inspection framework for depository participants mandates adaptive sampling and combined qualitative quantitative scoring to prioritize inspections. Depositories must adopt a risk based inspection framework covering specified operational and compliance areas, use an Adaptive Sample Size methodology with base samples and risk based multipliers, and compute a Total DP Risk Score by summing normalized quantitative and qualitative area scores. DPs are categorized by percentile into risk bands that determine inspection frequency and sample sizes; joint inspections and off site inspection tools are required, and depositories must amend rules, communicate requirements, and share risk ratings for common DPs.
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Risk based inspection framework for depository participants mandates adaptive sampling and combined qualitative quantitative scoring to prioritize inspections.
Depositories must adopt a risk based inspection framework covering specified operational and compliance areas, use an Adaptive Sample Size methodology with base samples and risk based multipliers, and compute a Total DP Risk Score by summing normalized quantitative and qualitative area scores. DPs are categorized by percentile into risk bands that determine inspection frequency and sample sizes; joint inspections and off site inspection tools are required, and depositories must amend rules, communicate requirements, and share risk ratings for common DPs.
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