Individual counterparties, therefore, must carefully assess the potential benefits of clearing. 4. Conclusion: the role of public policy  The role of public policy is to encourage sound risk management. In this regard, policymakers are encouraging firms to enhance their risk-management systems, including appropriate management oversight, adequate risk-management policies and procedures, effective risk-measurement and monitoring systems, comprehensive internal controls and independent external audit.
Policymakers simply cannot dictate the details of risk management based upon assumed market developments. Markets currently are in tremendous flux, and policymakers cannot foresee the needs in future years. Thus, the soundest course is to create a clear legal and regulatory environment within which market participants can develop risk management tools as needed.