About Us

Risk Management

company risk management visual image
RISK MANAGEMENT
We ensure transparency in asset management
by establishing an integrated system of internal controls and risk management.

내부통제

Internal
Control

Key Functions

  • 01
    Establish internal control and regulatory compliance systems
  • 02
    Operate an independent and specialized compliance team
  • 03
    Build frameworks for client protection and conflict-of-interest prevention
  • 04
    Respond quickly to violations
  • 05
    Timely reporting to
    management and the Board of Directors

Internal Control
Organization

  • Board of Directors

    Establishes standards for the development
    and operation of internal control systems

  • CEO

    Executes and supports the full range of activities necessary
    for the establishment and effective operation
    of the internal control system

  • Compliance Officer & Department

    Oversees the establishment and operation
    of the company’s internal control system,
    while independently monitoring and inspecting
    to prevent unfair trading and conflicts of interest,
    thereby fostering a sound asset management environment

Internal Control
Inspection
Standards

  • Internal Controls on Employee Conduct
    • Emphasize regulatory compliance through employee training based on
      internal control standards
    • Systems to prohibit improper business practices and prevent unfair trading activities
    • Regulate employee transactions in financial investment products
      • Reporting obligations (accounts & transactions)
      • Prior approval required for listed equity trades; prohibition on purchasing securities within the portfolio manager’s investment universe
    • Obligations for conflict-of-interest management and information barriers
    • Approval requirements for offering or receiving material benefits
    • Prior review required for external activities
  • Internal Controls for Fund Management
    • Daily monitoring of compliance with laws, fund regulations, internal rules, and investment guidelines
      • Check restrictions such as investment targets, limits, and risk exposure levels
      • Report violations to portfolio managers and requiring corrective action
    • Review the appropriateness of pre-asset allocation decisions
    • Monitor broker evaluation, selection, and trade allocation plans
    • Check the accuracy and fairness of NAV calculation procedures
    • Review IPO participation and related compliance
    • Monitor for potential violations of self-dealing prohibitions

Fund Management Internal Control
Review Procedures

  • Pre-trade
    review
    • Review fund charters, prospectuses, and investment guidelines
    • Manage regulatory, charter, and internal rule restrictions within systems
    • Set limits on available funds and short-selling
  • Mid-trade
    review
    • Use OMS (pre-trade monitoring system)
    • Monitor compliance status updated every 20 minutes
    • Immediately notify managers of violations and request resolution
  • Post-trade
    review
    • Use HINTs (post-trade monitoring system)
    • Conduct final reviews of prior-day trading outcomes each morning
    • Notify management and portfolio managers of violations and request action
    • Require violation statements, reports, and establish preventive measures, if needed
    • Require disciplinary action for material violations

리스크관리

Risk
Management

Policy

  • 01
    Checks and balances between
    portfolio management and risk management
  • 02
    Foster employee awareness and a culture of risk
    management
  • 03
    Continuous efforts to establish and operate a
    systematic risk management framework
  • 04
    Develop preemptive risk management measures to
    prepare for unexpected exposures

Risk Management
Organization

  • Board of Directors

    Final decision-making on firm-wide risk management

  • Risk Management Council

    Review overall risk management and decide on necessary measures

  • Risk Management Officer & Department

    Independent risk management unit responsible for identifying
    and assessing the company’s risks, and measuring, monitoring,
    and reporting risk levels

Role

  • Risk Management System
    • Establish, maintain, and enhance firm-wide risk management systems
    • Provide timely risk information to the board and management
    • Operate the Risk Management Council and develop risk strategies
  • Risk Limit Management
    • Define risk tolerance levels and monitor compliance
    • Measure risk indicators by type and monitor daily operations
  • Performance Analysis
    • Analyze and report daily/monthly performance
    • Break down excess returns to identify key performance drivers
    • Evaluate relative performance against peers funds and managers

Fund Management
Risk Control
Procedures

  • Pre
    management
    • Establish basic policies and strategies for firm-wide risk management
    • Define investment universe
    • Set standards for risk identification and measurement across categories
      • Indicators to quantify exposures by risk type
      • Risk limits at both fund and product levels
    • Review potential risks and prepare management measures during product development
  • Mid
    management
    • Continuous risk monitoring
      • Measure and review risk indicators by type
      • Check compliance with limits and monitor risk levels
    • Early warning system for significant risk factors
    • Assess the probability and potential impact of risk events
  • Post
    management
    • Risk control through the Risk Management Council
    • Performance evaluation
      • Share performance analysis results at monthly asset management review meetings
      • Delivering feedback to the investment division on performance and attribution factors
    • Implement resolution procedures and examine remedial actions in response to limit violations