Effective Risk Monitoring in Asset Management

John is a portfolio manager at an asset management firm that adheres to the CFA Institute's Asset Manager Code. Recently, the firm has updated its risk management procedures to enhance the monitoring of investment risks associated with emerging market investments. John is reviewing the updated procedures and is particularly interested in how these changes align with the expectations set forth in the Asset Manager Code.

In the context of risk management, which of the following best exemplifies the principles of the Asset Manager Code regarding risk monitoring?