The paper proposes a framework for guidelines concerning risk management, providing principles and an outline of the key elements for a standard in the risk management process.
The paper proposes a framework for guidelines concerning risk management, providing principles and an outline of the key elements for a standard in the risk management process.
The principles outlined in the document should apply to both asset management companies and investment companies that have not designated a management company.
The principles will be complemented by a paper on the aforesaid technical and quantitative issues related to risk management, which is expected to be published for consultation by the end of 2008.
CESR’s view is that sound risk management systems require organisational requirements and specific safeguards and diligences in order to ensure that all kinds of risk are adequately captured. Such requirements and good practices would be set out through common principles in order to both foster convergence among competent authorities and provide useful guidance to market participants.
CESR will publish a feedback statement and final level 3 text, by the end of this year.
Deadline for consultation is 17 October 2008.
Consultation paper
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