Risk Conducting Officer
A role responsible for managing risk in a company
This role is ultimately responsible for all risks associated with running the company and the portfolio of the AIFM or ManCo.
The “Conducting Officer” title refers to a nominated responsible person. They typically report to The Board and the CSSF in an official capacity. The main tasks will be to ensure effective design, implementation and ongoing assessment of the risk management policy, risk management procedure and risk framework. This will be in relation to new and existing funds and strategies associated with running a Management Company or an AIFM.
- Oversee the implementation of a consistent approach regarding risk management and work with the wider business to effectively implement and monitor procedures.
- Lead the design, implementation and ongoing assessment of the risk management policy, risk management procedure and the risk framework for new and existing funds and strategies.
- Monitor, analyse and implement regulatory changes related to risk management.
- Monitoring of risk profiles for the funds managed.
- Identify risk limits and compliance of the funds with risk profiles and monitor the funds compliance with the investment limits.
- Produce regular and ad-hoc reports to the senior management, Board of Managers and the regulator.
- Implement a consistent structure and procedures across all funds under management including effective KPI reporting.
- Oversee the preparation, organisation, execution and documentation of board and shareholder meetings.
Depending on the size and stage of development of the AIFM /Manco you may be working on your own or leading a team of risk managers.
- Experience as an CSSF approved Conducting Officer of an AIFM / ManCo is beneficial.
- 5-10 years’ experience in Risk Management relating to the relevant fund types:
- Alternative Investments (Private Equity, Venture Capital, Credit / Debt or Real Estate / Infrastructure and tangible assets).
- Profound knowledge of the relevant Luxembourg legal and regulatory requirements related to Risk Management, Fund Administration and Corporate Governance
- Additional experience of Corporate Management, Fund Administration or similar is beneficial.
- Highly professional, self-motivated, self-responsible, high integrity, and good analytical, influence and communication skills.
- University degree in business, finance, law or economics.
An ever-evolving regulatory framework
The regulatory framework describing the roles and responsibilities of managing directors and control functions in Luxembourg AIFMs has evolved considerably in the last few years. On a national level, the new CSSF circular 18/698 regarding the authorisation and organisation of Luxembourg AIFMs strengthens the applicable regulatory requirements. It emphasises the importance of proper governance and management control in AIFMs.
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Risk responsibility and the types of funds in the portfolio
The types of risk responsibility and focus depends on the types of funds in the portfolio: liquid/UCITs or illiquid/alternatives.
In an alternatives / AIFM environment the focus would be more towards operational risk.
In a UCITs / ManCo environment the risks would be broader and have a greater focus on quantitative risks such as:
- Market risk
- Credit risk
- Liquidity risks
Risk Conducting Officers can also have responsibility for other areas of the business. These can include areas like: Valuation and Compliance. This depends on the size, structure and types of funds managed.