Risk Management
Risk management
System
System
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- Risk management team
- Manage risks by type
(i.e., market, credit, and liquidity) - Determine position, loss, and risk limits
and monitor them continuously - Establish risk indexes and analyze them
continuously - Evaluate performance of funds and
identify factors influencing them - Prepare daily risk management reports
-
- Compliance team
- Ensure that everything is in compliance
with company’s internal control standards - Ensure that everything is in compliance
with the company’s regulations, collective
investment agreements, management
plans, and internal guidelines - Develop daily activities beforehand
- Check for errors and take steps to deal
with them - Compliance
- Daily and monthly reports
Characteristics of risk management system
- Treat investment risks as part of the management process
- Separate the treatment of management-related risks from the monitoring of internal compliance controls
- Risk management activities: Focus on management-related risks
- Compliance activities: Ensure compliance with regulations, collective investment agreements, and management plans
