Collective Investment Funds

Risk Management

An effective risk management system is characterized by active board and senior management supervision and sound processes for risk assessment, control, and monitoring. Because risk strategies and organizational structures vary, there is no single risk management system that works for every bank or every CIF. Each bank should establish a risk management system suited to the needs and circumstances of its CIFs. The “Asset Management” and “Investment Management Services” booklets of the Comptroller’s Handbook provide additional guidance on risk management systems and processes in this area.

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