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October 3, 2011
TO: INVESTMENT COMPANY DIRECTORS No. 17-11COMPLIANCE MEMBERS No. 40-11
SEC RULES MEMBERS No. 115-11
SMALL FUNDS MEMBERS No. 61-11
INTERNAL AUDIT ADVISORY COMMITTEE No. 8-11
RISK MANAGEMENT COMMITTEE No. 8-11
RISK MANAGEMENT ADVISORY COMMITTEE No. 6-11
PRIMARY CONTACTS - MEMBER COMPLEX No. 5-11 RE: IDC AND ICI PUBLISH PAPER ON FUND BOARD OVERSIGHT OF RISK MANAGEMENT
IDC and ICI are pleased to present the paper, Fund Board Oversight of Risk Management, which can be found at http://www.idc.org/pdf/pub_11_oversight_risk.pdf. [1] The paper provides an overview of risk management concepts and fund risks; discusses the respective roles of a fund’s board and adviser; provides insight on risk management and oversight practices in the fund industry; and provides practical guidance for boards.
The policies, procedures, and practices discussed in the paper are intended to assist directors in considering issues pertinent to the funds they oversee. The paper should not be viewed or relied upon as a model or a set of “best practices” or as a substitute for appropriate professional advice with respect to the applicability of laws and regulations in particular circumstances. The paper also is not intended to express any legal opinions or conclusions concerning any particular investment or specific action, policy or procedure.
Annette Capretta
Deputy Managing Director
Independent Directors Council Tamara K. Salmon
Senior Associate Counsel
Investment Company Institute
endnotes
[1] To obtain a hard copy of the paper, please call the ICI Library at (202) 326-5872 and request “Fund Board Oversight of Risk Management.”