Building an appropriate and workable risk management infrastructure / framework Neil Brown Managing Director Global Head of Risk Management
Neil Brown Managing Director NoteWell Associates Ltd. [email_address] Asset Managers have been subjected to significant changes in the way that they are required to manage risk within their business. Some of these relate to Basel 2, but there is a responsibility to implement and evidence an enterprise wide risk framework that supports ICAAP. This can be complicated by the evolving approach to regulation of complex groups resulting in changing regulatory relationships for asset managers. This talk will address the issues involved in achieving this wider risk framework.
Mitigating Risk by Evidencing Risk Control “ … ..we will scrutinise proposals for new UCITS III funds and conversions of existing funds and will engage in a thematic review of the risk management of firms that are proposing to operate or are operating UCITS III funds.” Hector Sants, 19 th September 2005
… .financial services regulators around the world are rightly concerned that t he business and affairs of financial services firms are responsibly and effectively organised and controlled at senior management level and that firms’ senior management take responsibility for this
a firm is required to establish, implement and maintain adequate risk management policies and procedures which identify and set the tolerable level of risk relating to its activities and effectively manage those risks.
A firm also has to have a separate risk control function, where this is proportionate depending on the nature, scale and complexity of its business. This function will be responsible for assessing the risks that the firm faces and for advising the firm's governing body and senior managers on these risks.
Mitigating Risk by Evidencing Risk Control Christine Sinclair 15 th May 2006
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Set senior responsibilities and deliverables to drive framework down through the business
Ensure reporting is appropriate and evidenced
Having created this framework, be ready for internal/external review…