Risk Management in Asset Management Firms

As an asset manager, you are responsible for ensuring that your firm adheres to the Asset Manager Code, which emphasizes the importance of risk management throughout investment processes. You have been approached by a junior analyst who is preparing a report on risk management practices at your firm. The analyst has some preliminary ideas but is unsure about the key elements that should be addressed, particularly in the context of the firm's investment decision-making process.

In a well-structured essay, discuss the critical components of effective risk management as articulated in the Asset Manager Code. Include how these components can be integrated into an investment manager's operations and decision-making processes while also reflecting on the importance of transparency and accountability in risk management practices.