Investment Risk Governance

The new standard for investment risk monitoring

Investment Risk Governance: IRG is the new by-word for efficient, accurate and effective risk monitoring. Investment risk is, in many cases, the biggest single risk to an institution and their clients. Often it is the last risk to be considered and thus leaves institutions exposed to the vagaries of the market and the style of their investment managers and teams. Chasing performance is a risky business. CheckRisk’s IRG system lays out a considered, practical and thorough approach to maximise the chance of your investment style working.

IRG also provides pension trustees, boards and non-executive directors with the knowledge they need to be assured their fiduciary responsibilities are being met. IRG is an essential risk monitoring system.

CheckRisk has developed an IRG practice that covers the following key areas:

  • Investment Risk Tolerance, Investment Risk Budgeting, & Investment Risk appetite analysis
  • Investment Process Review
  • Model Validation
  • Stress-testing
  • Organisational Risk Tolerance and Analysis
  • Investing for Risk using risk based Strategic and Tactical Portfolio modelling
  • Alert and System Breach reporting
  • Board and Risk Team reporting

The purpose of IRG is to assist Boards, Risk Teams and Investment Teams to understand and implement risk strategies that will deliver returns within a framework of acceptable risk.  IRG is a simple cost effective way of ensuring the standards you set are being met to mitigate investment risk.

IRG also has the regulatory benefit of third party oversight with regard to Investment Risk monitoring and analysis.

Investing for risk as opposed to investing for return has some surprising benefits and outcomes. Firstly, it places risk as the driver of all returns. Risk, after all, may be a positive and not something to be avoided at all times. It is a question of pricing risk. Secondly, investing for risk opens up a plethora of strategies that can be employed to protect the core of your investment strategy. Thirdly, investing for risk identifies your organisation as one that recognises the changing nature of investment and the importance of innovation.

CheckRisk’s IRG expertise can make a difference to returns, risk control, regulatory reporting, and risk culture.

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Download a PDF brochure of our Investment Risk Governance approach for more information.

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