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Risk Monitoring

Risk Monitoring

InvestGlass Risk Monitoring has been designed to streamline and enhance your risk management processes, allowing you to efficiently assess and address active breaches within your portfolio.

Navigate to My Company > Settings > Financials

Begin by configuring the snooze period for each type of breach, including Appropriateness, Suitability, Concentration, and Universe List. This 'Snooze' period will be automatically assigned once a justification has been selected for a specific breach.

Reviews active breaches by accessing the "Portfolio Monitoring" page.

Navigate to the "Justification & Create PDF" section to address the active breaches.

Entering Client Decision:

On the 'Justification & Create PDF' page, you will find a list of all current active breaches. Here, you can set the justification for each individual breach by selecting the client's decision and then choose a justification for the breach from a predefined dropdown menu, which becomes available only after the client's decision has been recorded.

Automatic Snooze Date Assignment

Once the client decision is recorded and a justification is selected, the system automatically sets a "Snooze until" date for the breach based on predefined settings.

Generating the Monitoring Report

Upon generating the Monitoring Report, the breach’s status is automatically updated from "Active" to "Justified" within the system.

Creating a Contact Report and Updating Status

When a contact report for the portfolio incorporates the Monitoring Report, the system updates the breach status to "Accepted by Client”.

Expiration of Snooze Period

If the breach is not resolved by the time the "Snooze until" date expires, the system automatically resets the breach status to "Active".

Status Workflow and Transitions

a. Appropriateness / Universe List Breaches:
Status - Active: Breaches related to appropriateness or universe list are initially created in the "Active" status.

b. Suitability / Concentration Breaches:
Status - Pending: Breaches related to suitability or concentration are initially created in the "Pending" status.
Status Change: Pending to Active: If there are X consecutive occurrences of a "Pending" breach or if the gap percentage exceeds Y%, the status is promoted to "Active." (Rename this status to "Suitability and Concentration – Gap Threshold Y%").

c. Justification of Active Breach in Monitoring Report PDF:
Status Change: Active to Justified: When the "Snoozed until date" is set for an "Active" breach, and it appears in a Monitoring Report PDF, its status is changed to "Justified."

d. Promotion to Accepted by client in Contact Report:
Status Change: Justified to Accepted by client : When a contact report is created for a portfolio, and a Monitoring Report is included, all "Justified" breaches with a "Snoozed until date" set are promoted to "Accepted by client ."

e. Return from Accepted by client to Active:
Status Change: Accepted by client to Active: If a Accepted by client breach's "Snoozed until date" becomes overdue, its status reverts to "Active," and the "Snoozed until date" is cleared.

f. Resolution of Breach:
Status Change: Current Status to Resolved: A breach can be set to "Resolved" regardless of its current status.

Updated on: 11/01/2024