Asset Manager Code: Risk Management Assessment

As an asset manager, you are responsible for the investment strategies of multiple clients, each with varying risk tolerances and investment goals. Recently, your firm has experienced significant market volatility, prompting a review of your risk management practices.

Your CEO asks you to prepare a comprehensive assessment of your risk management procedures and how they align with the CFA Institute's Asset Manager Code, particularly focusing on the principles of risk management.

Your assessment should address the following components:

• Identification and measurement of risk.
• Appropriate risk management strategies tailored for distinct client profiles.
• Implementation of risk limits and the monitoring process.
• Communication of risk to stakeholders.
• Review and enhancement of risk management practices over time.

Be sure to integrate examples from your experience as an asset manager to support your assessment, ensuring clarity and relevance throughout your response.