Ensure adherence to the guidelines pertinent to SEBI in respect of RMF and relevant principles thereunder including risk identification, risk management, risk reporting (both periodic and escalation of material incident) and corrective actions taken, if any.

Ensure daily management of risk and necessary reporting relating to Investment risk of all scheme(s) such as market risk, liquidity risk, credit risk etc. and other scheme specific risks

Review and provide recommendations for changes to the Investment and other policies related to Investments function.

Ensure implementation of an integrated investment management system across front office, mid office and back office

Ensure Investment policies are aligned to the investment objectives as documented in the Scheme Information Document (“SID”)

Formulate, review and implement a framework for –

• Updation / modification in the equity or debt investment universe

• Updation in internal investment limits;

• Provide relevant information to CRO regarding the risk reports

• Quantitative risk analysis

• Review portfolio concentration and take necessary actions to make adjustments to the portfolios

• Monitoring risk appetite within the potential risk class of the respective schemes

• Assessment of the governance risk of the issuer

• Assessing and monitoring risks of investing in multiple markets

• Maintenance of all relevant documents and disclosures with regard to the debt and money market instruments before finalizing the deal

Ensuring that schemes are managed in line with regulatory requirements

Ensure adherence to the “Stewardship Code” and other regulatory updates prescribed by SEBI for mutual funds

Calculate overall risk by taking in to account the weighted average of –

• The risk-o-meter and

• The events of defaults

Ensure periodic reviews and monitoring the following –

• Activities performed by fund managers with respect to risk identification, risk management, reporting and corrective actions

• Review and approve the changes to the risk appetite within the potential risk class of the respective schemes

• Exceptions / breaches to the Investment limits and identify and implement corrective actions

• Investment risk of new products

• Implementation of controls around dealing room such as –

  • non usage of mobile phones

  • usage of dedicated recorded lines

  • restricted internet access

  • handling of information

• Ensure adequate due diligence is conducted and documented during inter-scheme transfers

Monitor exceptions identified on review of the regular risk management activities

Ensure that Fund managers and Dealers comply with Code of Conduct as per Schedule V B of Mutual Fund Regulations

Report the key risks identified and corrective actions taken to the CEO and CRO

Define and set internal limits (as applicable) such as -

• minimum number of stocks/securities,

• cash (net of derivatives),

• stocks/securities vis-a-vis benchmark and

• Beta range

Define specific responsibilities of the Fund Managers

Ensure adherence to risk appetite framework - maintain risk level for schemes

Review adequacy of disclosures made to the investors regarding significant risks such as liquidity, counterparty and credit (quality of investments made mainly debt based on the credit rating), investment, and other risk areas across all schemes. Ensure disclosures made to clients are consistent with investments and holdings

Responsible for the governance (incl. reputation and conduct risk associated for the respective function)

Define specific responsibilities regarding risk management of key personnel reporting to CIO

Maintaining risk level as per the risk metric

Undertake immediate corrective action for non-compliance or major findings post approval from CEO as per DoP and shall report to CRO regarding the risk reports.

Perform adequate due diligence of outsourced vendors prior to onboarding

Ensure periodic assessment of outsourced vendors considering following elements:

• Review of vendors' people, systems and processes

• Documentation and communication of error tolerance and code of conduct and monitoring breaches

• Monitor fraud vulnerabilities in the outsourced process

• Report SLA breaches