Best-practices document updated reflecting the changing role of risk management on the buy-side, evolving regulation and post-crisis risks faced by investment managers and the clients whose risks they are entrusted to manage. The Risk Principles document is updated and enhanced from a previous version published in 2008.
JERSEY CITY, New Jersey, Oct. 15, 2015 /PRNewswire/ -- The GARP Buy Side Risk Managers Forum is announcing the release of Risk Principles for Asset Managers, a statement of best-practices guidelines prepared by senior risk management executives of leading investment firms.
The 21-page document outlines a basic framework for governance, investment risk and operational risk, and, in sections devoted to each, describes their relevance to buy-side firms and approaches to effective implementation.
Reflecting the shared expertise of GARP Buy Side Risk Managers Forum members, the principles are designed to guide boards, trustees, senior portfolio and business managers and risk personnel in developing and evaluating their risk management framework. However, taking note of the wide variety of money management and advisory firms contributing to and covered by the Risk Principles, the document states that any particular firm's principles "depend on many factors, and each firm is advised to carefully consider its particular risks and the most effective way to address them." There is ultimately no "one size fits all" solution for Risk Management on the buy-side and each risk management program should be tailored to optimize effectiveness relative to the risks of each firm and investment processes which they execute.
"Far-reaching regulatory changes since the global financial crisis, along with advances in enterprise risk management capabilities and higher expectations of risk functions by clients, regulators and management boards, have made this an opportune time to issue revised and enhanced Risk Principles," said Ross Cuddeback, President of the GARP Buy Side Risk Managers Forum.
"As fiduciaries, our institutions are entrusted with decisions directly impacting the financial well-being of individuals, corporations and nations – and ultimately the global economy. That responsibility requires the highest standards in risk management to be embedded in our operations and cultures, which the Risk Principles are designed to underscore and reinforce," added Cuddeback, who is Head of Asset Management Risk– Americas for Deutsche Asset & Wealth Management.
"The Global Association of Risk Professionals is pleased to have worked with the industry-leading practitioners of the forum to complete the timely new edition of Risk Principles for Asset Managers," stated Richard Apostolik, President and Chief Executive Officer of GARP. "It is in keeping with our ongoing mission, through education and thought leadership, to promote the risk management profession and, within it, best practices and professional standards of the highest caliber."
Risk Principles for Asset Managers can be accessed via: http://www.garp.org/#!/buy_side_risk_managers_forum/
About The Global Association of Risk Professionals
The Global Association of Risk Professionals (GARP) http://www.garp.org is a not-for-profit global membership organization dedicated to preparing professionals and organizations to make better-informed risk decisions. The GARP community represents over 150,000 risk management practitioners and researchers from banks, investment management firms, government agencies, academic institutions and corporations from more than 195 countries.
GARP's mission is to educate, train and set global standards in financial and energy risk management. The association administers the Financial Risk Manager (FRM®) and Energy Risk Professional (ERP®) exams; certifications recognized and valued by risk professionals worldwide. GARP also helps advance the role of risk management via comprehensive professional education and training for professionals of all levels.
About The GARP Buy Side Risk Managers Forum
The GARP Buy Side Risk Managers Forum consists of heads of risk management and chief risk officers from investment management and advisory companies, including asset management firms in the U.S. and worldwide serving retail, high-net-worth and institutional clients. For a list of current members of the Forum, click here.
For all inquiries please contact:
Craig Collins, SVP, Head of Media & Global Business Development
Global Association of Risk Professionals (GARP)
SOURCE The Global Association of Risk Professionals (GARP)