The ICG Board considers risk management a function of critical importance in order to preserve the independence, efficiency and sustainability of the business and to continue delivering long-term sustainable investment returns to our clients.
To this extent, ICG has implemented a robust group wide risk management framework which has the objective of instilling and maintaining a strong risk control culture throughout the business. Our risk management framework encourages risks to be identified, assessed, and managed throughout all levels of the organisation as well as for each managed investment.
In line with this approach, ICG actively:
- Identifies all strategic risks using the risk management process;
- Ensures risk management becomes part of day-to-day management;
- Provides staff with policies and procedures necessary to manage risks;
- Ensures staff are aware of risks and how to manage them;
- Assigns accountability for risk; and
- Monitors the risk profile of the business and implement a continuous improvement approach to risk management.
Risk Management Framework
The ICG Risk Management Framework has been structured and implemented in order to comply with the highest international risk management standards for the sector.
Specifically, the Risk Framework:
- Identifies the key stakeholders and compliance obligations of the business;
- Documents the ICG risk assessment process and risk appetite;
- Documents the impact and likelihood of each risk;
- Notes any treatment plans to address risk exposures; and
- Documents the material compliance and risk exposures of the business and the controls and monitoring frameworks in place.
Risk Identification and Rating process
Risks are evaluated in accordance with the ICG Group Risk Management Policy and Risk Rating matrix. The Risk Rating process is applied in five stages:
- Identification of Risk;
- Analysis of Inherent Risk;
- Evaluation of Residual Risk;
- Treatment of Risk; and
- Monitoring of Risk.
This is an ongoing process with risks constantly reviewed and refreshed.
Risks are identified by all staff and executives within investment teams, supporting business units, and business stakeholders. All staff within ICG are responsible for identifying risks within their area.