Top risks and controls for Investment Management

From the Doorstep International risk register, curated by Ahmer Nehal. Last updated 17 Oct 2026.

The Investment Management register lists 35 key risks and 83 best-practice controls across 6 units: Alternative Investments, Client Service, Mutual Funds, Portfolio Management, Risk Management, Wealth Management. Use it to identify risks, benchmark your existing controls or start a risk and control self-assessment (RCSA).

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Banks provide investment management services, which include managing and investing clients' money to provide returns while reducing risks.

It is essential that banks perform regular risk assessments in order to manage risks properly.

Risk analyses assist in identifying potential risks and weaknesses in the investment management process as well as estimating their likelihood of happening and potential effects.

This enables banks to use suitable risk management techniques, such as investment diversification and risk ceiling setting, to reduce the impact of prospective risks.

Banks may preserve their clients' trust and confidence by undertaking risk assessments, which also assure compliance with legal and regulatory obligations.

Alternative Investments: key risks and controls

Is charge of overseeing the bank's alternative investments, including real estate, hedge funds, and private equity.

Risk	What can go wrong	Best-practice controls
Complexity	Alternative investments such as private equity, real estate, and hedge funds can be complex and difficult to understand. This can make it challenging for the unit to assess the risks associated with these investments accurately.	Robust Due Diligence Process: Implementing a thorough due diligence process is crucial to mitigate the risk associated with alternative investments. This process should involve in-depth research, analysis, and evaluation of the investment opportunities. It may include assessing the investment manager's track record, reviewing the investment strategy, evaluating the underlying assets, and analyzing the potential risks and returns. A comprehensive due diligence process helps to identify and understand the complexities and risks involved in alternative investments, enabling the unit to make informed decisions. Independent Third-Party Reviews: Engaging independent third parties, such as external consultants or advisors, to review and assess the alternative investments can enhance the unit's ability to understand the risks involved.
Finding suitable investments	Finding suitable alternative investments that meet the bank's investment criteria can be challenging. The unit may need to spend a significant amount of time and resources to identify and evaluate potential investments.	Develop clear investment criteria: Establish specific investment criteria that are aligned with the bank's overall investment strategy. This will help narrow the scope of potential investments and focus efforts on those that are most likely to meet the bank's needs. Allocate appropriate resources: Ensure that sufficient resources are allocated to the unit responsible for identifying and evaluating potential investments. This includes both human and financial resources. Utilize technology: Utilize technological solutions, such as investment screening and analysis tools, to help streamline the identification and evaluation of potential investments.
High fees	Alternative investments typically have higher fees than traditional investments, which can impact the performance of the portfolio.	Fee Negotiation and Comparison: The most effective control is to actively negotiate and compare fees associated with different alternative investment options. By doing thorough research and negotiating with investment managers or platforms, you can potentially reduce the impact of high fees. This control allows you to identify more cost-effective alternatives and negotiate better terms. Due Diligence and Selection: Conducting comprehensive due diligence and selecting alternative investments carefully can help mitigate the risk of high fees.
Lack of liquidity	Many alternative investments are illiquid, meaning that they cannot be easily bought or sold. This can make it challenging for the alternative investments unit to manage the portfolio effectively.	Diversification: Diversifying the alternative investments portfolio is an essential control measure. By investing in a variety of alternative assets across different sectors, geographies, and strategies, the risk of illiquidity is spread out. This helps to ensure that any individual illiquid investment won't have a significant impact on the overall portfolio's liquidity. Due Diligence: Conducting thorough due diligence on potential alternative investments is crucial. This involves performing extensive research and analysis to evaluate the liquidity profile of each investment opportunity.
Limited transparency	Alternative investments are often private and not traded on public exchanges. This lack of transparency can make it difficult for the unit to obtain accurate information about the investments.	Due Diligence: Conduct thorough due diligence on the alternative investment before making any commitments. This should include a review of the fund manager's track record, investment strategy, and past performance. Transparency Requirements: Require that the fund manager provide regular and timely reporting on the performance of the investment. This should include both financial and non-financial information such as portfolio holdings, investment strategy, and risk management processes. Independent Valuation: Engage an independent third-party valuation firm to value the investment periodically. This can help to ensure that the investment is being accurately valued and can help to identify any potential issues.
Regulation	Alternative investments are often subject to different regulations than traditional investments such as stocks and bonds. The alternative investments unit must ensure that they comply with these regulations, which can be time-consuming and costly.	Regulatory Compliance Framework: Establish a robust regulatory compliance framework specifically designed for alternative investments. This framework should include policies, procedures, and controls to ensure adherence to relevant regulations. It should also encompass regular monitoring and reporting of compliance activities. Dedicated Compliance Team: Form a dedicated team of compliance professionals with expertise in alternative investments. This team should be responsible for staying updated on the latest regulations, assessing their impact on the alternative investments unit, and implementing necessary measures to achieve compliance. They should also provide ongoing training and guidance to staff members involved in alternative investments.

Client Service: key risks and controls

Accountable for giving clients excellent customer service and establishing and keeping a good rapport with them.

Risk	What can go wrong	Best-practice controls
Communication	Communication is key to building strong relationships with clients. The client services team must be able to communicate clearly and effectively, and respond to client inquiries and concerns in a timely manner.	Develop and implement a communication plan: A communication plan can help ensure that everyone on the client services team understands what is expected of them in terms of communication with clients. The plan should outline how often communication should occur, the types of communication channels to be used, and the specific messages that should be conveyed. Train client services team members: Training should focus on developing communication skills, such as active listening, empathy, and effective verbal and written communication. Team members should also be trained on how to handle difficult or sensitive conversations.
Competition	The investment management industry is highly competitive, with many firms offering similar products and services. The client services team must differentiate the bank's offerings and provide superior service to retain clients.	Client Relationship Management (CRM) System: Implementing a robust CRM system can greatly enhance the bank's ability to manage and track client interactions, preferences, and needs. A comprehensive CRM system enables personalized client servicing, facilitates effective communication, and helps identify opportunities for upselling or cross-selling. Talent Development and Training: Invest in developing the skills and knowledge of the client services team. By providing ongoing training and professional development opportunities, the team can enhance their expertise in investment products and market trends.
Customization	Clients may require customized investment solutions that are tailored to their individual needs. The client services team must have the skills and expertise to develop and implement these solutions.	Recruitment and training: Ensure that the client services team is comprised of individuals who possess the skills and expertise necessary to develop and implement customized investment solutions. Develop a comprehensive training program to ensure that team members have the knowledge and skills required to perform their duties effectively. Standardized processes and procedures: Develop standardized processes and procedures for the development and implementation of customized investment solutions. This will ensure that all team members follow the same process and that solutions are developed and implemented consistently across clients.
Meeting client expectations	Clients may have different investment objectives, risk tolerances, and expectations regarding returns. The client services team must ensure that they understand each client's individual needs and work to meet their expectations.	Robust Client Profiling and Onboarding Process: Implementing a comprehensive client profiling and onboarding process is crucial to understand each client's investment objectives, risk tolerances, and return expectations. This process involves gathering detailed information about clients' financial goals, investment experience, risk appetite, and any specific preferences. By conducting a thorough assessment of each client, the client services team can gain a deeper understanding of their needs and tailor their services accordingly. Regular Communication and Engagement: Maintaining open and regular communication with clients is essential to ensure that their expectations are understood and met. This can involve conducting periodic reviews to reassess clients' objectives, risk preferences, and expectations regarding returns.
Regulatory compliance	The investment management industry is heavily regulated, and the client services team must ensure that they comply with all relevant regulations.	Regulatory Compliance Framework: Implementing a robust regulatory compliance framework is the most effective control. This involves establishing policies, procedures, and systems to monitor and ensure compliance with all relevant regulations. The framework should include regular assessments, documentation, reporting, and training programs to keep the client services team up to date with regulatory requirements. Regular Compliance Audits: Conducting regular compliance audits is crucial to identify any potential gaps or non-compliance issues.
Technology	Clients expect investment management firms to leverage technology to provide convenient, secure, and efficient services. The client services team must stay up-to-date with technological advancements and ensure that the bank's technology infrastructure meets clients' needs.	Robust Technological Infrastructure: Building and maintaining a robust technological infrastructure is crucial to meeting clients' expectations. This control involves investing in reliable hardware, software, and network infrastructure that can handle the demands of the firm's operations. Regular assessments, upgrades, and security measures should be implemented to ensure the infrastructure remains efficient, secure, and capable of meeting clients' needs. Technology Proficiency and Training: Ensuring that the client services team possesses the necessary technological proficiency and skills is vital for meeting clients' expectations. This control involves providing comprehensive training programs to enhance the team's knowledge of relevant technologies and their applications in the investment management industry. Regular skill assessments and continuous professional development opportunities should be provided to keep the team updated with the latest advancements and best practices. By equipping the team with the right skills, the firm can effectively leverage technology to provide convenient, secure, and efficient services to clients.

Mutual Funds: key risks and controls

In charge of overseeing the bank's mutual funds, investment entities that combine money from numerous participants to buy assets.

Risk	What can go wrong	Best-practice controls
Competition	The mutual fund industry is highly competitive, with many firms offering similar products and services. The mutual funds team must differentiate the bank's offerings and provide superior returns to attract and retain investors.	Investment Strategy and Research: Developing a robust investment strategy and conducting thorough research is crucial for differentiating mutual fund offerings and achieving superior returns. This control involves employing experienced and skilled portfolio managers, analysts, and researchers who can identify profitable investment opportunities and make informed decisions. Emphasizing research capabilities and leveraging innovative investment strategies can provide a competitive edge in the market. Performance Analysis and Monitoring: Implementing a strong performance analysis and monitoring system is essential to evaluate the performance of mutual funds and make timely adjustments. This control involves employing dedicated professionals who regularly analyze the funds' performance against benchmarks and industry peers, identifying areas for improvement, and making necessary adjustments to enhance returns. Transparent reporting and investor communication about performance are vital to building trust and retaining investors.
Fee pressure	Mutual funds typically charge fees, which can impact performance. The mutual funds team must balance the need to generate returns with the need to keep fees competitive.	Conduct a cost-benefit analysis: The mutual funds team can periodically evaluate the fees charged by the fund and compare them with the returns generated by the fund. This analysis can help to ensure that the fees are competitive and provide value to investors. Implement fee caps: The mutual funds team can set a limit on the fees charged by the fund, ensuring that fees do not exceed a certain percentage of the fund's assets. This can help to prevent fees from negatively impacting the fund's performance. Use passive investment strategies: Passive investing involves buying and holding a diversified portfolio of securities that tracks a market index.
Managing risk	Mutual funds are subject to market risk, which can impact performance. The mutual funds team must have the skills and expertise to manage risk effectively and make informed investment decisions.	Robust Risk Management Framework: Establishing a comprehensive risk management framework is crucial. This framework should include policies, procedures, and processes to identify, assess, and manage risks associated with mutual funds. It should cover various risk categories such as market risk, liquidity risk, credit risk, and operational risk. Regular monitoring and evaluation of risk exposure should be conducted to make informed investment decisions. Experienced and Qualified Team: Building a skilled and knowledgeable mutual funds team is vital for effective risk management. The team should consist of experienced professionals with expertise in financial analysis, portfolio management, and risk assessment. These professionals should have a deep understanding of the financial markets, including the dynamics of different asset classes and the ability to identify potential risks and opportunities. Regular training programs and professional development opportunities should be provided to enhance their skills and keep them updated with the latest market trends and regulatory requirements. Having a competent team in place ensures that the mutual funds are managed by individuals who can make informed investment decisions and effectively navigate market risks.
Performance measurement	Measuring the performance of mutual funds can be challenging, particularly when compared to benchmarks. The mutual funds team must have appropriate benchmarking and performance measurement tools in place to assess performance accurately.	Robust Benchmarking Process: Establish a comprehensive benchmarking process that aligns with the investment objectives and strategy of the mutual funds. This includes selecting appropriate benchmarks, defining relevant performance metrics, and regularly updating benchmarks to reflect changing market conditions. Performance Measurement Tools: Implement advanced performance measurement tools and systems that can accurately calculate and analyze the performance of mutual funds. These tools should be capable of aggregating data from various sources, handling complex calculations, and generating meaningful performance reports.
Portfolio construction	Constructing and managing a mutual fund portfolio requires skill and expertise. The mutual funds team must have a deep understanding of the markets and the ability to identify investment opportunities that align with the fund's investment strategy.	Establish a clear and well-defined investment strategy for the mutual fund that aligns with the investment objectives and risk appetite of the fund's investors. Hire experienced and qualified professionals to manage the mutual fund who possess the necessary knowledge and expertise in financial markets, investment analysis, and portfolio management. Develop a robust process for the selection of investment opportunities, including a rigorous due diligence process to assess the investment's suitability and risk profile. Establish a risk management framework that identifies and assesses the risks associated with the mutual fund's investment strategy and monitors these risks on an ongoing basis.
Regulatory compliance	The mutual fund industry is heavily regulated, and the mutual funds team must ensure that they comply with all relevant regulations. This can include registration, disclosure, and reporting requirements.	Robust Compliance Program: Establishing a comprehensive compliance program is crucial for ensuring adherence to regulatory requirements. This program should include written policies and procedures, periodic risk assessments, monitoring and testing protocols, and training programs for employees. By implementing a strong compliance program, the mutual funds team can proactively identify and address potential compliance issues. Dedicated Compliance Officer: Appointing a dedicated compliance officer within the mutual funds team can greatly enhance regulatory compliance.

Portfolio Management: key risks and controls

Accountable for managing the bank's investment portfolios on behalf of clients, which may include stocks, bonds, and other assets.

Risk	What can go wrong	Best-practice controls
Asset allocation	Asset allocation involves deciding how to allocate assets across different investment classes, such as stocks, bonds, and alternative investments. The portfolio management team must have a deep understanding of the markets and the ability to identify investment opportunities that align with the bank's investment strategy.	Investment Policy Statement: A well-crafted Investment Policy Statement (IPS) can guide the portfolio management team's decision-making process and ensure that asset allocation aligns with the bank's investment strategy. Diversification: Diversification is a key risk management technique that involves spreading investments across different asset classes, sectors, and geographies. Diversification can help reduce the impact of a single investment's performance on the overall portfolio. Risk Assessment: The portfolio management team should conduct a thorough risk assessment to identify the risk associated with different investment classes, sectors, and geographies. The team can then determine the appropriate asset allocation strategy.
Diversification	Diversification is key to managing risk in a portfolio. The portfolio management team must ensure that the bank's portfolio is well-diversified across asset classes, geographies, and industries.	Portfolio diversification policy: Establish a clear policy that defines the minimum diversification requirements for the portfolio, including asset classes, geographies, and industries. The policy should also set limits on the maximum exposure to any single asset, region or sector. Regular portfolio review: Conduct regular portfolio reviews to ensure that the portfolio remains in compliance with the diversification policy. This review should also identify any concentration risk that may have emerged, and steps to mitigate it. Stress testing: Conduct stress testing on the portfolio to determine the potential impact of various market scenarios on the portfolio.
Market risk	Portfolio management involves managing market risk, which can impact performance. The portfolio management team must have the skills and expertise to manage risk effectively and make informed investment decisions.	Risk Management Framework: Implementing a comprehensive risk management framework is crucial for effectively managing market risk. This includes establishing risk tolerance levels, defining risk measurement methodologies, and implementing risk mitigation strategies. The framework should outline clear procedures and guidelines for the portfolio management team to follow when making investment decisions. Diversification: Diversifying the portfolio across different asset classes, industries, and geographic regions is an effective strategy to mitigate market risk. By spreading investments across various securities, the impact of any single investment's poor performance is reduced.
Performance measurement	Measuring the performance of a portfolio can be challenging, particularly when compared to benchmarks. The portfolio management team must have appropriate benchmarking and performance measurement tools in place to assess performance accurately.	Robust Benchmark Selection: Ensuring the portfolio management team selects appropriate benchmarks that align closely with the investment strategy and asset class of the portfolio. This control helps in establishing a relevant performance comparison and minimizing any distortions or biases in measuring performance. Reliable Performance Measurement Tools: Implementing reliable and accurate performance measurement tools specifically designed for portfolio evaluation. These tools should accurately capture and analyze the portfolio's returns, risk metrics, and other relevant performance indicators, providing a comprehensive assessment of the portfolio's performance relative to the benchmarks.
Regulatory compliance	The investment management industry is heavily regulated, and the portfolio management team must ensure that they comply with all relevant regulations. This can include registration, disclosure, and reporting requirements.	Robust Compliance Policies and Procedures: Establishing comprehensive compliance policies and procedures is crucial for ensuring adherence to relevant regulations. These policies should cover registration, disclosure, and reporting requirements, among other regulatory obligations. The policies should be regularly updated to reflect changes in regulations and should be easily accessible to all members of the portfolio management team. Regular Compliance Training and Education: Conducting regular compliance training and education programs for the portfolio management team is essential. These sessions should focus on enhancing their understanding of relevant regulations and the consequences of non-compliance.
Technology	Technology is increasingly important in portfolio management, as it can provide tools for analysis, risk management, and performance measurement. The portfolio management team must stay up-to-date with technological advancements and ensure that the bank's technology infrastructure meets their needs.	Regular Technological Training and Education: Ensuring that the portfolio management team receives regular training and education on technological advancements is essential. This control allows them to stay up-to-date with the latest tools, techniques, and best practices in portfolio management. By acquiring the necessary skills and knowledge, the team can effectively leverage technology for analysis, risk management, and performance measurement. Robust Technology Infrastructure: A strong technology infrastructure is crucial for supporting portfolio management activities. This control involves ensuring that the bank's technology systems, hardware, software, and networks are reliable, secure, and scalable. It includes measures such as implementing redundancy and backup systems, robust cybersecurity protocols, and maintaining up-to-date software and hardware resources.

Risk Management: key risks and controls

Accountable for determining and controlling the market, credit, and liquidity risks that are connected to the bank's investment activities.

Risk	What can go wrong	Best-practice controls
Contingency planning	The risk management team must develop and implement contingency plans to ensure that the bank is prepared for unexpected events, such as market disruptions, natural disasters, or cyber attacks.	Business Continuity Planning (BCP): Develop and implement a comprehensive BCP that outlines the procedures to be followed in the event of a disruption to the bank's operations. Disaster Recovery Planning (DRP): Develop and implement a DRP that outlines the procedures to be followed in the event of a natural disaster or other major event. Risk Assessment and Management: Regularly assess and manage risks associated with potential disruptions to the bank's operations, such as those caused by cyber attacks or other threats.
Cybersecurity risks	Investment management activities involve sensitive client data, and cyber attacks can result in significant financial and reputational damage. The risk management team must develop and implement robust cybersecurity measures to protect against cyber attacks.	Multi-factor authentication (MFA): Implementing MFA significantly enhances security by requiring multiple forms of identification to access sensitive systems or data. This control helps prevent unauthorized access even if a user's password is compromised. Encryption: Encryption is crucial for protecting sensitive client data. It involves encoding information in a way that only authorized parties can access it. By implementing strong encryption protocols for data at rest and in transit, the risk of unauthorized access is greatly reduced.
Identifying and assessing risks	The risk management team must identify and assess all potential risks to the bank's investment management activities, including market risk, credit risk, operational risk, and legal and regulatory risk.	Risk Assessment and Monitoring Framework: Implementing a comprehensive risk assessment and monitoring framework is crucial. This involves continuously identifying, evaluating, and quantifying various risks associated with investment management activities. The framework should include robust risk identification techniques, risk measurement models, and regular monitoring and reporting mechanisms. Strong Internal Controls: Establishing and maintaining strong internal controls is essential to mitigate risks effectively. This includes implementing segregation of duties, ensuring clear lines of responsibility and accountability, conducting regular internal audits, and implementing control processes for each type of risk.
Internal control	The risk management team must establish and maintain a system of internal controls to ensure that investment management activities are conducted in a safe and sound manner.	Segregation of Duties: This control involves separating critical functions within the investment management process. By assigning different individuals or teams to handle key activities such as trade execution, portfolio management, and reconciliation, the risk of unauthorized actions or errors is reduced. Segregation of duties helps ensure that no single person has excessive control over investment decisions or operations, increasing accountability and minimizing the potential for fraud or mismanagement. Regular Independent Audits: Conducting regular independent audits is an essential control to verify the effectiveness of the internal control system. Independent auditors can assess compliance with established policies and procedures, identify weaknesses or gaps in controls, and provide recommendations for improvement. These audits should be performed by external parties or internal audit teams that are independent from the investment management function. Regular audits help ensure that the internal controls are operating effectively and provide assurance to stakeholders that investment management activities are conducted in a safe and sound manner.
Keeping up with regulatory changes	The investment management industry is heavily regulated, and regulations can change rapidly. The risk management team must stay up-to-date with regulatory changes and ensure that the bank's risk management policies and procedures are in compliance with all applicable regulations.	Conduct regular reviews of regulatory requirements: Establish a process for periodically reviewing and assessing regulatory requirements that affect the investment management industry. This can include subscribing to industry publications, attending regulatory seminars and training sessions, and networking with industry peers. Update policies and procedures: Based on the results of the review of regulatory requirements, update the bank's risk management policies and procedures to ensure that they are in compliance with all applicable regulations. The policies and procedures should be updated promptly to reflect any regulatory changes. Assign responsibility: Designate a specific team or individual responsible for monitoring regulatory changes and ensuring that the bank's risk management policies and procedures.
Mitigating risks	Once risks are identified and assessed, the risk management team must develop and implement strategies to mitigate those risks. This can include developing risk management policies and procedures, establishing risk limits, and monitoring compliance with those limits.	Risk Management Policies and Procedures: Developing and implementing comprehensive risk management policies and procedures is the most effective control measure. This involves creating a structured framework that outlines the organization's approach to identifying, assessing, and managing risks. These policies and procedures should cover various aspects, including risk identification methods, risk assessment criteria, risk response strategies, and reporting mechanisms. Risk Limits: Establishing risk limits is an important control measure to mitigate risks. Risk limits define the maximum acceptable level of exposure to specific risks, ensuring that the organization operates within predefined boundaries.

Wealth Management: key risks and controls

Offering high net worth individuals and families with investing and financial planning services.

Risk	What can go wrong	Best-practice controls
Client retention	Commercial banks must work hard to retain their clients, as they face competition from other banks and specialized wealth management firms. This requires them to offer competitive investment strategies and provide a high level of customer service to their clients.	Competitive Investment Strategies: Developing and offering competitive investment strategies is crucial for commercial banks to retain clients. By continuously assessing market trends, conducting thorough research, and adapting their investment offerings to meet client needs, banks can provide value-added investment options that attract and retain customers. This control helps differentiate banks from their competitors and ensures that clients perceive them as providing superior investment opportunities. Customer Relationship Management (CRM) Systems: Implementing robust CRM systems enables commercial banks to effectively manage and enhance their relationships with clients. CRM systems provide a centralized platform to track customer interactions, preferences, and feedback.
Competition from specialized wealth management firms	Commercial banks often face stiff competition from specialized wealth management firms that have a more focused expertise in investment management. These firms are often better equipped to offer customized investment strategies and have a more personalized approach to wealth management.	Focus on customer experience: One way to compete with specialized wealth management firms is to offer a superior customer experience. This can be achieved by providing personalized service, responding promptly to customer inquiries, and offering customized investment strategies. Develop a niche: Specialize in a particular area of investment management to differentiate your bank from competitors. For example, your bank could focus on socially responsible investing or sustainable investing, which are becoming increasingly popular. Develop specialized expertise: Invest in developing the expertise of your investment management team to match or exceed that of specialized wealth management firms. Encourage ongoing training and education, and hire employees with specialized qualifications.
Regulatory compliance	Wealth management involves a significant amount of regulatory compliance, and commercial banks must comply with various regulations and guidelines when it comes to managing investments. This can be a time-consuming and costly process, and non-compliance can result in significant penalties and reputational damage.	Robust Compliance Framework: Establishing a comprehensive compliance framework is crucial for mitigating regulatory risks. This involves implementing policies, procedures, and internal controls to ensure adherence to relevant regulations and guidelines. The framework should include clear guidelines for investment activities, documentation requirements, and periodic risk assessments to identify any compliance gaps. Regular Training and Education: Ensuring that employees receive regular training and education on regulatory compliance is essential.
Risk management	Investment management involves a significant amount of risk, and commercial banks must have robust risk management systems in place to protect their clients' investments. They must also be able to manage their own risks associated with investment management, such as liquidity risk and market risk.	Robust Risk Assessment and Monitoring: Implementing a comprehensive risk assessment framework is crucial for effective risk management in investment management. Banks should conduct thorough risk assessments to identify and evaluate potential risks associated with investment management, including liquidity risk and market risk. Regular monitoring of these risks allows banks to identify emerging threats and take proactive measures to mitigate them. Diversification and Asset Allocation: Diversification is a fundamental strategy to mitigate investment risks. Banks should ensure that investment portfolios are well-diversified across different asset classes, regions, and sectors. This approach helps reduce the impact of individual investment failures and spreads risks across a broader range of investments.
Technology investment	Commercial banks must make significant investments in technology to support their wealth management and investment management businesses. This includes investing in platforms and tools that can help them provide better investment advice and more personalized service to their clients.	Conduct a thorough risk assessment to identify potential risks associated with technology investments. Develop and implement a comprehensive information security program to protect client data and prevent data breaches. Regularly review and update the bank's technology infrastructure and ensure that it is compatible with the latest software and hardware. Establish a vendor management program to monitor third-party technology providers and ensure that they meet the bank's security and compliance requirements. Implement robust authentication and authorization processes to ensure that only authorized users have access to sensitive client data.

This register is a starting point for risk identification and benchmarking against international practice. Adapt the risks and controls to your institution's size, products, jurisdiction and regulatory requirements.

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Frequently asked questions

What are the key risks in Investment Management?

The main risk areas covered are Alternative Investments, Client Service, Mutual Funds, Portfolio Management, Risk Management, Wealth Management. Each unit lists its key risks with a short explanation and the best-practice controls that mitigate them.

How do I use this register for a risk and control self-assessment?

Select the risks that apply to your units, map the listed controls to the controls you actually operate, rate inherent risk and control effectiveness, then agree actions for gaps. The free RCSA workbook on this page has the columns ready.

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