Risk Universe is comprised of three major types of risks, and each risk consists of several sub risks.
|Risks on own account||Business Risks||
|Risks on client account||Investment Risks||
Risk Management Team and Asian JV Senior Risk Manager& CRO AXA IM Asia is Cooperation relation, Global Head of Risk Management and AXA Group-CRO is Cooperation relation
There are five Policies, eight Standards, two Rules and two Plans with regard to the Risk Management, as well as the Internal Control Standards.
|Internal Control Standards|
eight Standards, two Rules
and two Plans
with regard to
|1. Risk Management Consultation Group Policy|
|2. Collective Investment Property Risk Management Policy|
|- Detailed Risk Management Rules for Derivatives Products|
|- Detailed Risk Management Rules for Short-Term Financial Collective Investment Vehicles|
|- Collective Investment Property Risk Limit Standards|
|- Risk Management Contingency Plan|
|- GIPS (Global Investment Performance Standards) Compliance Standards|
|- Benchmark Selection Standards|
|- Collective Investment Property Risk Grade Classification Standards|
|- Derivatives Product Risk Limit Management Standards|
|3. Hedge Fund Risk Management Policy|
|4. Proprietary Asset Risk Management Policy|
|5. Operational Risk Management Policy|
|- Business Continuity Plan (BCP)|
|- Incident Reporting Standards|
|- Business Process Management Standards|
|- EUC (End User Computing) Control Procedure Standards|
Kyobo AXA Investment Managers’ compliance team is to build and operate an independent monitoring system required by related regulations in order to insure sound asset management and to protect client’s interests. Our Compliance team checks and correct the actual conditions of employee’s law observance and provide consultation on law observance to board of directors and management.
Also, they consistently monitor the result of process and standardswhich was fixed to abide by regulations and due diligence related to asset management. We carry out periodic and frequent Compliance training program to raise compliance mind for the entire employees and try to block anysources of illegitimate activities through the examination of compliance checklist by teams, which enables them to follow internal control on their own.
Kyobo AXA Investment managers will dedicate the best efforts to become the asset management company which regards the clients’ interests as the top priority and is faithful to the basics through the establishment of foundation for its transparent management based on the thorough observance of regulations and compliance standards.
※ Proactive compliance : prior check on list of the violations involved in trading position through the simulation or virtual tradingbefore confirmation of managing instruction
Reinforce ethics and control unfair trading by establishing internal control stradardson the basis of Capital Market and Financial Investment Services Act
※ Follow-up supervision : after managing completed, search if there was any violation occurred as a final step when inputting the investment instruction or when calculating the price
|Lists||Contents of reporting|
|Daily||writing from compliance team to notify investment management team daily, frequently report to CEO on the acts of violation|
|Weekly||writing from compliance team to notify investment management team weekly and receive the statement of incidetns|
|Monthly||Accumulate weekly writing from compliance monthly to report CEO|
|Compliance training||Regular training : according to the annual training schedule, carry out 10 credit completion course for entire employees (supervisory institutions or guest lectures from external personnel)|