Top 3 measures for risk management pic and its asset

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Top 3. Measures for Risk Management PIC and its asset manager have taken measures to secure compliance with the Law Concerning Investment Trusts and Investment Corporations, the Financial Instruments and Exchange Law and other related laws and regulations, including the establishment of various internal rules and management systems, the assignment of personnel, and the implementation of training and education of their officers and employees. [Measures by Asset Manager] Rules and Procedures Content Asset management guidelines The Guidelines define portfolio management standards (standards for property use, geographical area, asset size, due diligence and investment amounts as well as policies for selling investment assets) and real estate administration policies. Regulations on transactions with interested parties The regulations establish policies on transactions between parties that may constitute conflicts of interest. Regulations on preventing transactions by insiders The regulations prevent the asset manager's officers and employees from becoming involved in insider trading and similar transactions. Portfolio Committee The Portfolio Committee, headed by the CEO, meets once every month in principle to discuss and determine policies on management, investment assets acquisitions and transfers, repair plans, etc. in order to continuously grasp possible risks. Compliance regulations, compliance management regulations and compliance manual These regulations establish basic policies on corporate ethics and compliance standards as a code of conduct for the officers and employees. The compliance manual is used to deepen understanding and to ensure the implementation of the basic policies and compliance standards. Compliance Committee The Compliance Committee, headed by the CEO receives reports on the
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status of compliance and discusses risk management. [Measures by PIC] PIC holds its Board of Directors meeting at least once a month, and the Executive Director reports on the status of execution to the Board at least once every three months. In addition, the Executive Director listens to comments from the asset manager concerning the status of asset management, and reviews and supervises related documents as necessary. This is to examine the possibility of transactions that would constitute conflicts of interest, and to manage risks involving conflicts of interest. Evaluation of Customers - Types of Investment Risks Interest Rate Risk Interest rate risk is the possibility that a fixed-rate debt instrument will decline in value as a result of a rise in interest rates. Whenever investors buy securities that offer a fixed rate of return, they are exposing themselves to interest rate risk. This is true for bonds and also for preferred stocks. The following article, Forces Behind Interest Rates , will deepen your understanding of the importance of interest rates and what makes them change.
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