A news release about its Manager Compliance & Operations Review said the offering provides institutional clients with the opportunity to understand and manage business, operational, and compliance risks at the total fund level based on a deeper understanding of their individual investment managers.
According to the announcement, the new offering begins with an initial organizational assessment followed by an onsite visit. After completion of thorough due diligence on a money manager’s internal operational, compliance, business and risk controls, each manager is assigned an overall qualitative risk rating. Russell then issues recommendations for necessary improvements, which are supplemented by ongoing monitoring and reporting.
Some of the risks reviewed as part of the service include regulatory compliance requirements; conflicts of interest; governance; management leadership and vendor oversight; systems and technology; and business continuity and recovery.
“The market has changed, and risk management needs to increasingly be a proactive part of the investment process so institutional investors can make fully informed decisions,” said Dianna Zentner, director of global manager oversight and due diligence, in the announcement.