Freddie Mac 2015 Annual Report Download - page 86
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Management's Discussion and Analysis Risk Management | Overview
Freddie Mac 2015 Form 10-K 84
RISK MANAGEMENT
OVERVIEW
Risk is an inherent part of our business activities. We are exposed to four major types of risk: credit risk,
interest rate and other market risks, liquidity risk, and operational risk. We primarily discuss credit risk,
interest-rate and other market risks, and operational risk in this section. See "Liquidity and Capital
Resources" for a discussion of liquidity risk. For more discussion of these and other risks facing our
business, see “Risk Factors.”
RISK MANAGEMENT FRAMEWORK
We manage risk using a three-lines-of-defense risk management framework. The diagram below provides
examples of how the three lines of defense complement each other under our risk management
framework. These roles and responsibilities continue to evolve.