Risk Management Approach

RISK MANAGEMENT

Risk Management Approach

The Risk and Compliance Group is comprised of two teams: the Risk team and the Compliance team.

The Risk Management function within the Risk and Compliance Group independently monitors and oversees the implementation of OIM’s risk management policies and practices in order to ensure the consistent performance of the Fund over time. A key part of Risk Management is running frequent analyses and reporting them back on a regular basis to the Risk Committee, as well as various other internal committees, and supporting the investment process.  All periodical (quarterly and annual) official risk reporting uses information provided by the independent Master Record Keeper.

The team has overall responsibility for measuring, monitoring and reporting on risks across asset classes. Risk budgeting approach is used to measure and identify the significant risk contributors (risk components) and to support optimal allocation of risk based on risk adjusted returns. In this process absolute and relative performance of the Fund and asset classes is analyzed and monitored regularly.

The comprehensive risk limit structure ensures that the risk taking process is continuously kept under control. It enables to apply preventive measures to avoid potential future losses by providing a solid base for proactive risk management. The team is responsible for OIM’s risk models and tools, and day-to-day monitoring of market, liquidity and operational risks, as well as regular monitoring of credit risk at the portfolio level.