The above senior officers have oversight responsibilities as part of firm wide RI Committee as described in SG 01. The Portfolio Manager and Investment Analysts are required to use ESG data as a portfolio monitoring tool as determined by the respective sub-committees. In conjunction with the Compliance Department, it is also the responsibility of the Portfolio Manager to ensure socially responsible mandates are followed.
Our firm has several formalized processes and groups empowered to manage risk. First, there is a formal Risk Management Committee chaired by the Enterprise CRO and firm CFO. The members of this committee represent all senior leaders of Fort Washington. That committee's charter identifies specific business, operational, reputational, regulatory, and performance risks to track and mitigate. ESG governance is specifically and regularly addressed by the Committee. The Committee meets at least quarterly to review activity and mitigation of previously identified risks and serves as the forum to identify new risks. At least annually, the Committee re-establishes the risk paradigm under which it will operate for the following year.
There is separate risk management infrastructure dedicated solely to investment management risk, which is included in the Performance Measurement and Risk function. This group works directly with the Enterprise CRO and firm CFO to provide regular top-down risk assessment on each of the firm's portfolios and strategies on IPS restrictions, violations to internal guidelines, correlation metrics, relative performance analysis and the implementation of other proprietary models. Regular internal reporting is provided to investment teams and all variances require explanation on a monthly basis.