Risk monitoring, structured (structured risk monitoring)

A capital management company must have its own risk management system for each of its investment funds in which derivatives are included, which continuously records, measures and manages the risks of the investment fund using sufficiently advanced risk management techniques. In doing so, both the risk profiles of the individual assets of an investment fund and the complete risk profile of the investment fund as a whole must be taken into account. The risk management techniques used must be based on the current state of development. – This is prescribed in detail by the German Regulation on Risk Management and Risk Measurement in the Use of Derivatives in Investment Funds under the German Investment Act (Derivateverordnung [DerivateV]) of February 6, 2004. – See Derivatives, Derivatives Ordinance, Capital Management Company, Risk Management. – Cf. BaFin Annual Report 2004, p. 89 (difficulties of risk measurement in funds of hedge funds) and the respective BaFin Annual Report (“Risk Models” section), BaFin Annual Report 2007, p. 167 (risk management for structured financial products).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/