Thread by @SAH16928046

What should I know about risk management for a job interview with an asset management and securities brokerage firm?
@IOSCOWIW @efc_global @MarketIntegrity @GARP_Risk

You need to know everything about Capital Markets at least.

Investment Banking and Asset Management Sector /brokerage require an exceptional understanding of debt and equity market instruments and asset classes.

Sound knowledge of derivative markets will add to your CV.

Risk Management in AMC's / IBs is more tilted towards Market risk analysis and modelling. IRM / ERM activities are usually not well coordinated, as most of the risk controllers continue to work independently, across specialized silos.

Unlike Commercial Banks and other deposit-taking institutions, which adhere to the BASEL II / III ERM and Risk Capital Management Guidelines.

In the AMC and Brokerage sector, they are general investment conventions and guidelines that are followed, such as the #GIPS (GLOBAL INVESTMENT PROFESSIONAL STANDARDS), as issued by the CFA Charter body aka #AIMR.

Also, Compliance with the Investment Policy of each fund is essential.
#Risk units normally track Compliance with the required standards.

E.g., an Equity Index Tracker Fund will require a completely different set of internal / risk controls and compliance standards, compared to a Sectoral ETF or other types of collective investment schemes

such as in the cases of a Money Market Fund, or an Aggressive Asset Allocation Fund, or a Bond Fund for that matter.

Secondly, you can generally apply the #COSO or #ISO31000 framework to develop governance, risk, and compliance architecture at any company.

#OECG issued #GRC Guidelines can also come in handy when developing #Operational Risk Frameworks and overall Compliance Standards and benchmarking performances.

However, in the context of certain cases, a further enhanced understanding of the CIP/AML / KYC / CTF will also be helpful.
Most of the Mutual funds and other investment vehicles have a strong Compliance Desk, which proactively oversees AML and CTF Controls.

So you, within the risk department, might end up monitoring & controlling such operational risks.

Overall, you should be able to do the following ⇾
Identify risks (KRIs).
Measure Risks
Manage Risks
Monitor Risks
Review Risks
Rebalance and realign your Activities as per Risk -Reward Measures.
Develop Policies and Procedures to support the above.

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