Risk Assessment Tools

IAA Provides Risk Assesment Tools

The Investment Adviser Association is pleased to present a series of risk assessment tools, including an overview article on risk assessment, a risk identification questionnaire, and a sample risk identification and assessment chart.

As part of their compliance programs and annual review process, investment advisers generally identify various risks to their firms and client accounts and endeavor to ensure that the firm’s compliance program addresses adequately these risks. The article, “Conducting A Risk Assessment,” is intended to assist advisers in developing and implementing their risk assessment process. The risk identification questionnaire includes a non-exhaustive list of questions that a risk assessment committee, or other appropriate person, may want to contemplate in order to identify potential risks to a firm and its clients’ interests. The sample chart is a suggested format with a few examples of how an adviser might use a chart to inventory and track a firm’s material risk matters.
The Investment Adviser Association does not intend for these documents to be a (i) comprehensive treatment of each issue that an adviser may need to address in its risk assessment process, or (ii) substitute for legal advice. Each advisory firm must tailor its risk assessment process to the firm’s own operations and business. The Investment Adviser Association undertakes no responsibility to update this document. For more information, please contact IAA legal staff.

IAA Members can access additional documents and resources in the Members Only Compliance Programs & Controls section of Legal, Regulatory & Compliance. If you need assistance accessing the Members Only area or have questions about membership, please contact the IAA at (202) 293-4222.