Management of risk is reflected in Funds SA policies, systems and processes. Funds SA believes that managing risk is iterative and that effective risk management can assist in setting strategy, achieving objectives and making informed decisions. Funds SA implements systems designed to identify, assess and mitigate risks that could impact investment performance, operational integrity and reputation.
Risk Management Approach
Funds SA employs a ‘three lines of defence’ model in managing risk. The first line consists of each business unit, which is accountable for identifying and managing risks within their area of responsibility. The second line is Funds SA’s internal Governance team which offers a centralised function responsible for monitoring activities and challenging business processes where appropriate. The third line comprises of independent auditors who conduct audits on the financial statements and Fund SA’s internal audit function, delivering additional assurance regarding risk management, governance and control activities.
Operational Resilience
Funds SA is committed to continuously strengthening operational resilience as an organisation. The company has implemented measures to minimise the likelihood and impact of disruptions to its critical activities, including targeted scenario testing to verify the effectiveness of business continuity plans. Fund SA also takes steps to ensure that its downstream material service providers are subject to enhanced contractual obligations to minimise severe disruption from unforeseen events.
Investment Governance
Funds SA has implemented an Investment Governance Framework that sets out how Funds SA formulates, implements and reviews its investment strategies. In accordance with the relevant APRA Prudential Standard on Investment Governance, Funds SA’s Investment Governance Framework includes the totality of structures, policies, processes, systems and people that enable Funds SA to fulfil its investment function.