Risk Management System
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- Risk management
process - Compliance
- Plans to ensure transparent
management process - Measurement and
Management System - Risk response plans
Measurement and Management System
We classify risks based on asset managers’ characteristics
and manage them in a fully computerized system.
| Classification | Definition | Management plan | |
|---|---|---|---|
| Investment risk |
Market risk | Risks due to change of market value of trusted assets |
MP (or BM) replication rate status management for each fund (Green, Yellow, Red) |
| Credit risk | Devaluation risks due to credit rating downgrade and default |
- Total credit limit and investment share of each issuer - Credit index inspection: Spread, credit indicators |
|
| Liquidity risk | Risk of not being able to meet fund demands due to inconsistent management periods, etc. |
- Average disposal date by stock, disposable date of - MMF: Mark-to-market disparity, scale, cash/ |
|
| Derivatives risk | Risks that could arise from managing derivatives. |
- Management index by fund management strategy - Monitoring of derivative risk assessment results |
|
| Real-estate risk | Risks that involve real estate management |
- Guidelines for lending, borrowing and - Principles regarding writing due diligence/ |
|
| Non- investment risk |
Reputation risk | Risk of potentially harming the company’s reliability in the market |
Reinforced internal audit |
| Product risk | Risks that could arise during product development and management |
Consult the Risk Management Committee before developing high-risk products |
|
| Operation risk | Risks due to insufficient task-handling procedure, employee mistakes, etc. |
- Devise guidelines for major tasks - Minimize recurrence of similar incidents by |
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