Management : Risk Standards 1-9

Overview: The article gives the idea of risk standards 1 to 9. The risk standard 1 states that Fiduciary responsibilities should be defined in writing and acknowledged in writing by the parties responsible. The standard 2 says that the Primary and Manager Fiduciaries should approve formal written policies, which reflect their overall risk management objectives. The risk standard 3 tells that Oversight of compliance with risk policies should be independent of line investment activity and conducted according to up-to-date, written policies and procedures. The standard 4 says that Organizational structure and reporting lines should be defined clearly and distributed to all parties whereas standard 5 tells that the Primary Fiduciary's risk policies should apply both to internal and external managers and should be consistent across similar asset classes and strategies. The standard 6 asserts that the Primary and Manager Fiduciaries should ensure that adequate education; systems and resources are available to implement and administer their risk policies. The standard 7 says about identification and understanding of key risks. The standard 8 states that Risk limits should be set for the aggregate portfolio and all individual portfolios. The risk standard 9 states about routine reporting, exception reporting and escalation procedures. To know about these standards in detail refer to the article.

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Format: HTML | Date: Jan 2003 | Pages: 1