| The risk management function at Charles Fleming Asset
Management is an independent oversight function with responsibility
for the oversight of both investment risks and non investment
(operational) risks. The function was created in recognition
of the value it adds through rigorous analytical reporting
metrics, coupled with a detailed knowledge of the business
and investment processes. The added value of independence
provides management with an extra control process and clients
with the reassurance that they increasingly require. Portfolio
analytics is responsible for investment risk oversight. It
is the combination of attribution and risk analysis that provides
deep insights into the effectiveness of delivering the portfolio’s
investment strategy. Portfolio analytics identifies which
parts of the investment process deliver added value and which
need to be revisited or refined.
Operational risk focuses on all aspects of risk control that
are inherent in an asset management company. These are grouped
under high level categories (people, process/procedures, systems,
governance and external), but the team assists line management
in identifying and controlling the risks in each area of our
Asset Management’s business. The Asset Management division
has developed mathematical formulae to monitor and report
key risks in the business, while operational risk is integrally
involved in reviews of all business areas. Risk Management
Committees in the local offices review a range of Management
Information Systems (MIS) to ensure that our Asset Management’s
processes are enhanced on a continuous basis.
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