Asset Management Risk Assessment Template for Denmark

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Key Requirements PROMPT example:

Asset Management Risk Assessment

I need an Asset Management Risk Assessment for a mid-sized pension fund in Denmark, focusing particularly on ESG risks and climate change impact assessment, to be implemented by March 2025.

Document background
The Asset Management Risk Assessment is a crucial document required under Danish financial regulations for organizations engaged in asset management activities. It serves as a comprehensive evaluation tool for identifying, assessing, and managing various risks associated with investment management operations. The document is mandated by the Danish Financial Supervisory Authority (Finanstilsynet) and must comply with both Danish national regulations and EU directives such as AIFMD and MiFID II. It is typically prepared annually or when significant changes occur in the investment strategy, market conditions, or regulatory environment. The assessment covers various risk categories including market, operational, credit, and liquidity risks, while also addressing emerging areas such as ESG and cybersecurity risks where applicable.
Suggested Sections

1. Parties: Identification of the asset management company and any relevant stakeholders

2. Background: Context of the risk assessment, including scope and objectives

3. Definitions: Key terms and concepts used throughout the assessment

4. Executive Summary: Overview of key findings and critical risk areas identified

5. Risk Assessment Methodology: Detailed explanation of the approach and methods used for risk assessment

6. Regulatory Framework: Overview of applicable regulations and compliance requirements

7. Risk Categories and Analysis: Detailed analysis of different risk categories including market, operational, credit, and liquidity risks

8. Control Environment: Description of existing control mechanisms and their effectiveness

9. Risk Mitigation Strategies: Proposed measures to address identified risks

10. Monitoring and Review Process: Procedures for ongoing monitoring and periodic review of risks

11. Roles and Responsibilities: Definition of key stakeholders' responsibilities in risk management

12. Reporting Requirements: Details of internal and external reporting procedures

Optional Sections

1. ESG Risk Assessment: Detailed analysis of environmental, social, and governance risks - include when managing ESG-focused portfolios

2. Technology and Cybersecurity Risks: Specific assessment of IT and data security risks - include for digitally-dependent operations

3. Cross-Border Risk Considerations: Analysis of international investment risks - include when managing international portfolios

4. Counterparty Risk Analysis: Detailed assessment of counterparty risks - include for complex investment structures

5. Crisis Management Procedures: Specific procedures for crisis situations - include for high-risk portfolios

6. Climate Risk Assessment: Analysis of climate-related risks and opportunities - include for portfolios with significant environmental exposure

Suggested Schedules

1. Risk Assessment Matrices: Detailed risk scoring and assessment matrices

2. Control Testing Results: Results of control effectiveness testing

3. Risk Register: Comprehensive register of identified risks and their characteristics

4. Compliance Checklist: Checklist of regulatory compliance requirements and status

5. Key Risk Indicators: List of KRIs and their thresholds

6. Action Plan: Detailed plan for implementing risk mitigation measures

7. Organizational Chart: Structure showing risk management responsibilities

8. Risk Assessment Tools: Templates and tools used in the risk assessment process

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Investment Management

Banking

Insurance

Pension Funds

Private Equity

Wealth Management

Fund Management

Alternative Investments

Real Estate Investment

Relevant Teams

Risk Management

Compliance

Investment Management

Legal

Internal Audit

Operations

Portfolio Management

Executive Management

Board of Directors

Investment Committee

ESG and Sustainability

Financial Control

Relevant Roles

Chief Risk Officer

Risk Manager

Compliance Officer

Portfolio Manager

Investment Director

Chief Investment Officer

Asset Manager

Risk Analyst

Investment Compliance Manager

Board Member

Chief Executive Officer

Internal Auditor

Legal Counsel

Investment Operations Manager

ESG Risk Analyst

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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