Booklet: Wholesale Payment Systems Section: Wholesale Payment Systems Risk Management Subsection: Strategic Risk

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Strategic risk relates to a financial institution’s future business plans and strategies. It includes risks associated with plans for entering new business lines, expanding existing services through mergers and acquisitions, and enhancing the infrastructure (e.g., physical plant and equipment and information technology and networking).

To mitigate strategic risk, management should have a strategic planning process in place to address its wholesale payment system business goals and objectives, including the information technology and network components required to carry out its business plan.

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