MFDF Releases Updated White Paper on Risk Management

On May 20, 2020, the Forum released an update of the 2017 report Role of the Mutual Fund Director in the Oversight of the Risk Management Function. The paper sets forth key concepts, principles and some questions that boards may find useful as they seek more information about a fund’s risks.

  • The first section of the paper lays out a fund director’s role and duties in risk oversight for the funds for which they are responsible.
  • The second section of the paper sets forth common risk management program elements to help directors to understand how investment advisers and service providers manage risks related to the funds they oversee.
  • The final section discusses specific areas of existing and emerging risks that impact the investment management industry.

“Risk is a key oversight area for fund directors, particularly in these challenging times. We hope the concepts discussed in the paper will better equip directors to deal with the challenges they face in their fiduciary and oversight responsibilities,” said Carolyn McPhillips, senior counsel at the Forum.