Risk Management Communication in Asset Management

As a senior portfolio manager at a large asset management firm, Sandra is responsible for overseeing the risk management framework within her team. In recent weeks, there has been a notable increase in volatility in the markets, prompting Sandra to evaluate her firm's adherence to the Asset Manager Code, particularly in relation to managing and mitigating risks effectively. One of the critical components of the Code is ensuring that clients are informed about how risks are managed in their portfolios.

During a client meeting, a prospective client inquires about the firm's risk management strategies and the potential impact of current market conditions on their investments. Sandra must ensure that her response aligns with the Code's principles regarding transparency and communication about risk processes.

What is the most appropriate response for Sandra to provide to the prospective client regarding the firm's risk management practices?