GARP Buy Side Risk Managers Forum Publishes New Risk Principles for Asset ManagersBest-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, N.J.Oct. 15, 2015 /PRNewswire-USNewswire/ -- 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.

Logo -

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:!/buy_side_risk_managers_forum/

About The Global Association of Risk Professionals   

The Global Association of Risk Professionals (GARP) 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) 
(o): +1-201-719-7242

RELATED LINKS:!/buy_side_risk_managers_forum/!/home


SOURCE The Global Association of Risk Professionals (GARP)


You need to be a member of Global Risk Community to add comments!

Join Global Risk Community

Votes: 0
Email me when people reply –

[Free COVID-19 Framework] What's the path to recovery look like?

We created a free presentation (attached), which discusses both global and organizational impacts of the COVID-19 pandemic, along with critical actions organizations should take immediately. This presentation introduces a framework that helps regions and organizations navigate a path to recovery via 9 potential scenarios. These scenarios capture outcomes related to GDP impact, public health response, and economic policies. The presentation also breaks down 6 immediate and critical actions…

Read more…
3 Replies · Reply by Boris Agranovich Jan 2, 2021
Views: 96

If risk management is about decision making, are current risk management solutions irrelevant?

Now that the updated COSO and ISO risk management standards emphasize a connection to enterprise objectives and decision making, does this mean ERM and GRC solutions focused on risk registers and regulatory compliance are missing the true value of risk management?Will current risk management solutions evolve to integrate more decision support functionality or will standalone prescriptive analytics and other technology solutions take a more prominent role in enabling risk-informed…

Read more…
3 Replies
Views: 56

A question related to classification of instruments between trading and banking book.

We have an interesting question from one of our members.       "We usually perform OTC FX transactions with clients backed-to-back on the market (with Banks). Now we are going to perform a FX swap (i.e. Spot + forward) JPY/EUR for the Bank account for 1 week at the longest. The purpose is to get EUR place @ CB for LCR compliance purpose (no trading purposes). Bank's Management think that this should be considered as a trading position and therefore be classified within the Bank's trading book.…

Read more…
4 Replies
Views: 159

Plunging oil prices: curse or blessing in disguise?

The recent sudden crash of oil prices has had a major impact on the world economy, leading to many troubled faces in the international arena. The Russians fear the effects of yet another powerful hit on their economy, Venezuela seems to be considering default and the Americans are weary of the consequences for its young and emerging shale oil industry. And then you have the Middle East, where the smallest match is enough to ignite the largest fire. But are these worries really justified or…

Read more…
1 Reply
Views: 30

Introducing the Global Risk Series - Book 1 Risk Management How Tos

Dear GlobalRisk Community member, Our community’s mission is to foster business, networking and educational explorations among members. Learn from some of the top experts in the industry as they clearly explain how to approach the most important Risk management concepts. Check out their expert tips and use the link at the end of each article to navigate back to the website to leave your comment or ask a question. Some of the topics include: How do you Explain Risk Appetite?  How to Prepare a…

Read more…
12 Replies
Views: 383

    About Us

    The GlobalRisk Community is a thriving community of risk managers and associated service providers. Our purpose is to foster business, networking and educational explorations among members. Our goal is to be the worlds premier Risk forum and contribute to better understanding of the complex world of risk.

    Business Partners

    For companies wanting to create a greater visibility for their products and services among their prospects in the Risk market: Send your business partnership request by filling in the form here!