Risk Management Approaches in the Asset Manager Code

As part of your role as an investment manager at a large asset management firm, you are responsible for risk management practices that align with the Asset Manager Code. Your team has recently implemented a new risk management framework designed to enhance the identification and assessment of various risks that may impact investment performance.

During a recent board meeting, the discussion focused on the adequacy of the new framework, particularly in the context of market volatility and liquidity risks. One of your colleagues argued that the firm should focus primarily on quantitative measures to assess risk, while another contended that qualitative assessments are equally important.

Which of the following statements most accurately reflects an appropriate approach to risk management under the Asset Manager Code?