Glossary
Risk Management Function
Risk Management Function is the internal control body prescribed by FinIA that systematically identifies, assesses, and monitors the risks of a wealth manager. At small institutions it may be combined with other roles, but must be documented and effectively separated from the operational management.
At a glance
01
FinIA (Art. 9) requires appropriate internal organisation, which includes effective risk management.
02
For small wealth managers, FINMA accepts simplified arrangements, provided the independence of the function is preserved.
03
The risk management system must be documented in writing and reviewed regularly; results must be made available to the Supervisory Organisation.
Frequently asked questions
FinIA provides for proportionate requirements. As a sole practitioner, you may fulfil the Risk Management Function yourself, but must demonstrate a clearly documented system for identifying and monitoring risks. The Supervisory Organisation assesses the adequacy of the arrangement as part of the Affiliation Audit.
Part of the topic
Selbstständig werden als Vermögensverwalter
Sources: FINMA · Systematische Rechtssammlung (fedlex)