Protect applies in the risk management principle of three lines of defense. The first line of defense consists of the operational part of the fund company and Crescit Asset Management's outsourcing partners Wahlstedt and Sageryd AB (WS), as well as Wahlstedt & Partners (WP) responsible for managing the risks arising daily in Protects activities in each area.
The second line of defence is responsible for monitoring risks and compliance and is made up of the centrally independent functions of risk and compliance. The risk function shall be responsible for and manage all the risks to which the Fund is exposed. The risk function is organizational and functionally independent of the operational units of Crescit Asset Management and shall be directly subordinate to the Board of Directors.
The third line of defence is the internal audit function which provides an independent review and inspection of the work of both the first and the second lines of defence. The internal audit function checks and tests the effectiveness of the independent risk function.
Protect has entered into a contract agreement (outsourcing) with RPM regarding the Risk Function. The sistering of Crescit Asset Management has appointed Christina Eriksson as Risk Officer. Risk Officer shall cooperate on a daily basis with responsible managers in Protect in order to ensure that the Fund's risk management system works effectively.
Furthermore, Protect has entered into a contract (outsourcing) with WP regarding independent external valuation and risk quantification as provided for in Chapter 11. FFFS 2008:11. WP's services consist mainly of; calculation of VaR, stress tests and calculation of liquidity risk in the Fund. The calculations are compiled and reported daily to the CEO, trusteeand risk function. WP's services are conducted within the framework of the first line of defence and are primarily intended to be used as part of the management risk management risk management work.
The risk function, is responsible for ensuring that the administration does not violate the limitations of VaR or stress tests established in fund regulations as well as in the internal limits set by the Board or CEO and that any infringements are remedied as soon as possible and in the interests of unit holders. The risk function is also responsible for reviewing the valuation of the derivatives as well as calculations of VaR and stress tests to ensure the quality of the reports.
For a more detailed description of the risk function’s responsibilities and appointed tasks, system, identification, monitoring and control it is important that a prospective investor takes part of the information in the fund’s risk instruction which can be obtained from the fund company.
