What does the Payment System Risk (PSR) Policy address?

The Payment System Risk (PSR) Policy specifically addresses the risk associated with payment systems. This policy is crucial as it aims to identify, assess, and mitigate risks that can arise from various payment systems. These risks can include credit risk, liquidity risk, operational risk, and systemic risk, which can have significant implications for the financial system as a whole.

The PSR policy provides guidelines and frameworks to help financial institutions manage these risks effectively, ensuring the stability and efficiency of payment systems. This focus on risk is essential for maintaining the trust and integrity of payment mechanisms, which are fundamental to the functioning of the economy.

While the other options, such as the cost of transactions, regulatory compliance, and fraud prevention, are certainly relevant topics within the broader context of payment systems, they do not specifically encapsulate the primary focus of the PSR Policy, which is centered on assessing and managing risks involved in payment processing.