Risk Management SCBAM

SCB Asset Management Co., Ltd realizes the importance of undertaking risk management and control in a systematic and efficient manner. The risk management policy must receive prior approval from the Board of Directors and policy revisions must be approved by the Risk Management Committee. Risk identification shall be arranged by taking into account corporate and process objectives through an appropriate approach to ensure satisfactory fund performance under the company's management.

In addition, SCBAM places a priority on boosting its risk culture so that its employees are familiar with risk management in their everyday performance. A risk management guide has been created and training organized for human resource development to ensure employees have thorough understanding, care, and awareness of risks that might impact their working unit, the organization, and concerned parties.

Risk Management Policy ANT

SCBAM's risk management policy is categorized into 4 types as follows:

1. Operational Risk
Scope   Objective

Involves risks arising from inadequacy or failure of internal processes, people, and systems or from external events, including legal risk and impacts on reputation from operational risk.


To reduce possible loss by building proper understanding among executives and employees of where and how operational risk can take place to ensure they cope with it appropriately and become more aware of any risk.



2. Market risk
Scope   Objective

Involves risks arising from changes in market factors, including:
- interest rates
- foreign exchange rates
- capital market instrument prices that affect the value of securities.


To maintain market risk taken by the investment portfolio at an appropriate and acceptable level.

3. Credit risk
Scope   Objective

Involves risks a party could experience from a financial liquidity crunch in the future, which may lead to a failure to service debts as committed.


To maintain the standard of the approach for establishing credit risk to the net asset value of the fund when investing in financial instruments of each company based on qualitative and quantitative criteria for business performance, and establishing the credit line the fund can obtain to invest in each company/party with approval given by the Risk Management Committee.

4. Liquidity risk
Scope   Objective

Involves risks arising from liquidity shortage in securities trading whereby the fund is unable to sell securities at an appropriate time and price.


To ensure liquidity is managed efficiently and maintain the cash flow the fund is required to have at a proper level by monitoring the cash position and customers' redemption behavior.