Risk Management in Asset Management under the Asset Manager Code

As an investment professional, you are responsible for the risk management policies of your asset management firm, which follows the CFA Institute Asset Manager Code. After a client meeting, you realize that several clients are concerned about the volatility of their portfolios, particularly in light of recent market turmoil.

Discuss the importance of risk management in asset management, addressing how the principles of the Asset Manager Code can guide your firm's risk management practices. In your response, detail specific risk management strategies that align with the Code and how they can address client concerns regarding portfolio volatility.