  This paper addresses the issue of blockchain protocol risks, a foundational
category of risks affecting Distributed Ledger Technology (DLT) which underpins
digital assets, smart contracts, and decentralised applications. It presents a
comprehensive risk management framework developed in collaboration with
financial institutions, blockchain development teams and regulators that
applies a traditional risk management taxonomy to address certain overlooked
blockchain protocol risks. The approach offers a structured way to identify,
measure, monitor and report blockchain protocol risks. The paper provides
real-world use cases to demonstrate the practicality and implementation of the
proposed framework. The findings of this work contribute to the evolving
understanding of blockchain protocol risks and provide valuable insights on how
these risks affect the adoption of DLT by financial institutions.
