EUGENE ASSET MANAGEMENT

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Risk Management system

Eugene Asset Management has a systematic and organized risk management system

Risk Management System

  • Pre-Risk Management
    Pre-set standards such as risk management
    standards & internal control and investment
    guidelines
    Product review & risk management plan
    (limit setting, compliance approval)
    Universe management specific to Investment
    target assets (research analysis, credit analysis,
    investment period)
  • Risk Management
    Performance Analysis (Benchmark Management,
    Contrast, Analysis of Performance Factors by Type)
    Risk management monitoring - Measuring and
    managing various risk indicators
    Risk management including regulations, codes,
    and limits through the system
  • Post-Risk Management
    Performance evaluation, factor analysis & feedback
    Process clarification, such as phased resolution and
    plans for abnormal symptoms
    Establishment of thorough follow-up cause
    identification & preventive measures for recurrence,
    internal sharing & training

Risk Classifications

  • MARKET RISK
  • CREDIT RISK
  • OPERATION RISK
  • LEGAL RISK
  • LIQUIDITY RISK
  • REPUTATION RISK

Risk Management Process

Risk Management Team
  • RISK MONITORING
    • Management Performance
    • Main Risk Indicator Management
    • Management Status (Trading History)
  • RISK MANAGEMENT
    • Performance Factorization & Analysis
    • Measuring Major Risk Indicators and
      Deviation
    • Investment Pool & Asset Analysis
Report
  • Risk Management Committee
    • Pre-/Post-Risk Response and
      Adjustments
      • Market and credit risk
        countermeasures
      • Phased resolutions and
        reporting when limit is exceeded
  • Asset Management Committee
    • Management Strategy &
      Market Response Consultation
      • Report on stocks,
        bond investment universe
      • Negotiating fund rebalancing
        and investment ratios
      • Individual corporate credit
        analysis
Risk Management Report
Constant Monitoring
Investment Guide
Risk Management Consultation
Management Headquarters Management Strategy Feedback including risk event countermeasures

Compliance Function

  • Achieving Transparency
    in Asset Management
    Inspection and application of all regulations, from
    the product development stage to the termination
    of the fund
    Pre- & post-monitoring of collective investment
    property management
    Designation of compliance points specific to
    major terms for proactive inspections
    Establishing an immediate reporting system to the
    relevant general manager & CEO in case of violation
  • Strengthening Internal
    Control
    Requirement for employees to sign a letter of
    commitment to implement internal regulation
    standards and the code of ethics
    Implementing internal standards to prevent unfair
    practices when employees invest in financial
    products
    Conducting regular and timely compliance training
    for employees
    Establishing a check list for each division and
    mandatory submission after periodic inspections
  • Protecting Customers’
    Interests
    We will continue to strive to be a faithful asset
    management company that puts our customers'
    interests first and builds a foundation for
    transparent management based on thorough
    compliance with laws and internal regulation
    standards

Compliance System & Reporting System

  • Enforcing Compliance
    Functions
  • Management Restriction
    Compliance Checks
  • Violation Notification
    & Resolution Requests
  • Action Result Report
  • Establishment of
    Reporting System
  • Enforcing Compliance Functions We enforce precautionary compliance functions.
  • Management Restriction
    Compliance Checks
    We check compliance with asset management restrictions through pre/post systems.
  • Violation Notification &
    Resolution Requests
    In case of violation, we can notify the person in charge immediately and request a resolution
  • Action Result Report We collect the action result reports for each violation.
  • Establishment of
    Reporting System
    We have a reporting system for violations to the head of Investment & CEO.
The process of Compliance
  • CEO
  • Compliance Team
  • Reporting counter measures to the results of Compliance Monitoring
  • Pre-Inspection
    • Separation of Trading and Management
    • Investment Asset Universe
    • Real-Time Inspection of Orders and Distribution
    • Investment Restrictions under Relevant Regulations
  • Post-Inspection
    • Post-Management Regulations/ Trust deed/ Guidelines
    • Investment Limit Inspection
    • Notification of Violations
    • Action Reports
  • Management Headquarters
  • Feedback through Daily Monitoring

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