Risk Management in Hyundai Asset Management initially operates in prior-prevention.
We devise to resolve any risk through active communication with management departments related to the risk factors by independently seeking bounds of the risk.
Internal Control Process
Pre-Review
Pre-Review
| Traditional Assets |
Alternative Assets |
- Devise the management strategy of risk factors
- Set a standard of risk management and application of risk tolerance limit
- Evaluate risk notification of investment proposal
|
- Risk factor confirmation based on assets
- Check expected cash flow
- Confirm related contracts
(law, unfavorable terms, etc.)
- Untact analyzation and Due Diligence
- Investment Proposal
|
|
Committee
Commodity Deliberation Commission
- Feedback following by preliminary review
- Submission of Investment Review Report
|
Set-up Fund and Contract
Set-up Fund and Contract
| Traditional Assets |
Alternative Assets |
- Applying Compliance checking system
- Register BM
|
- Check if the contract or investment proceeds under evaluation standards
- Examine contracts or proof documents
|
Fund Management Monitoring
Fund Management Monitoring
| Traditional Assets |
Alternative Assets |
- System-utilized real time Violation monitoring
- Screening management activities
- Operating monthly investment meeting
- Feedback and Outcome Analysis
|
- Checklist set-up and monitoring
- Exit sales rate, EOC Standards etc.
- Opening Quarterly AI Ex Post Facto Management Meeting
- Investment status and issue evaluation
|
|
Committee
Collective Investment Property Evaluation Committee
- Review the law and adequacy
|
If Regulatory violation and Risk Factors
If Regulatory violation and Risk Factors
| Traditional Assets |
Alternative Assets |
- Contents Share and Corrective order if the risk tolerance and violation exceeds
the limits
- Monitoring a measurement
- Future improvement method construction
- Decision of restriction following the rate of violation
|
- Immediate share of issue
- Discuss countermeasure
- Provide Legal Advices
|
|
Committee
Risk Management committee
- Report to board of directors
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