Risk Management

The basis for an effective risk management process is the identification and analysis of existing and potential risks inherent in any product. EIF therefore constantly adapts its risk management systems to keep pace with best market practices. Risk is monitored regularly on both individual transactions and on a portfolio level, and new and old transactions are assessed. RMM reviews the risk management methodologies, processes, and instruments in use in EIF's Investments department; issues independent opinions on all transaction proposals; independently reviews credit ratings (portfolio guarantees) and expected performance (venture capital) assigned by Investments; and checks limits.