Key Risks and Impacts in Asset Management PPT

This PPT slide, part of the 92-slide Unlock the Power of Operational Risk Management PowerPoint presentation, outlines significant risks associated with asset management, focusing on internal fraud, rogue fund management, and mis-selling practices. Each risk is detailed with its drivers and potential impacts, providing a structured overview for decision-makers.

Internal fraud, characterized by embezzlement and theft, is driven by governance issues such as ownership accountability and segregation of duties. The impacts include financial write-downs, costs associated with external consultants, and regulatory fines. This highlights the importance of robust governance structures to mitigate risks.

Rogue fund management, particularly unauthorized internal trading, shares similar governance-related drivers. The consequences mirror those of internal fraud, emphasizing the need for stringent oversight and validation processes. The slide suggests that the repercussions of such activities can lead to significant financial liabilities and reputational damage.

Mis-selling practices, especially towards retail investors, are also addressed. These practices stem from governance lapses and inadequate process design. The impacts are again consistent, with write-downs and regulatory fines being prominent. The slide points out the necessity for better training and expertise among staff to prevent unintentional errors and ensure compliance with regulatory standards.

Overall, the slide serves as a critical reminder of the multifaceted risks in asset management. It underscores the need for comprehensive governance frameworks and effective process implementation to safeguard against financial and reputational harm. Stakeholders should consider these insights when evaluating their risk management strategies.

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Risk Management Process Design Operational Risk Governance Compliance