Measurement : Risk Standards 10-16
- Topics:
- Enterprise Risk Management
- Tags:
- Business Operations,
- State,
- Standards,
- Security,
- Risk,
- Quality,
- Management,
- Investment,
- Instrument,
- Financial Services,
- ...
- Source:
- Capital Market Risk Advisors
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Overview: The article explains the different risk standards. The risk standard 10 states that all readily priced instruments should be valued daily, less-readily priced instruments at least weekly and non-readily priced instruments as often as feasible and whenever a material event occurs. The standard 11 states that Material discrepancies in valuations from different sources should be reconciled following established procedures. The risk 12 states that The Primary and Manager Fiduciaries should regularly measure relevant risks and quantify the key drivers of risk and return. The risk standard 13 states that Risk-adjusted returns should be measured at the aggregate and individual portfolio level to gain a true measure of relative performance. The standard 14 says that All investors, internal managers and external managers should test the likely impact of various market conditions or other events on the value of an instrument, portfolio or strategy by performing stress tests. The standard 15 states that Risk and return forecasts and models should be back tested at least quarterly and whenever material events occur to assess their reliability. The standard 16 says that Dependence on models and assumptions for valuation, risk measurement and risk management should be evaluated and monitored. To know about these standards in detail refer to the article.
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Format: HTML | Date: Jan 2003 | Pages: 1
