» Risk management is forward-looking and proactive. To be effective, risk management should seek to identify for management material risks that might impact the fund, the likelihood of them occurring, and the extent of their impact should they occur. Trend reports and other regular, formal processes may facilitate this effort as well as brainstorming sessions and thinking “outside the box.” Risk management, however, also can play an important role in analyzing past challenges and recommending changes to prevent their recurrence
