How we manage risk and compliance
Our approach to risk and compliance. Ensuring we protect both your and your clients’ best interests. And meet our regulatory obligations in full.
M&G Treasury & Investment Office’s (T&IO) risk and compliance model has been carefully designed to anticipate and minimise risk within the investment process while providing informed, pro-active guidance that supports the delivery of clients’ long-term investment needs. We call it our ‘three lines of defence’ model:
First line of defence (Portfolio and Risk Management)
- Identifies risks that could threaten the achievement of business objectives.
- Assesses and manages these risks in accordance with our policies, standards and risk appetite.
- Ensures the effective design and maintenance of processes together with the implementation of appropriate controls over these processes.
- Identifies and promptly escalates significant emerging risk issues.
- Reports operational incidents in line with the operational risk standards.
Second line of defence (Risk and Compliance Oversight and Challenge)
- Assists the Board with the formulation and subsequent communication of Prudential’s appetite for risk, risk management plans, risk policies and limits.
- Oversees and objectively challenges the identification, measurement, management, monitoring and reporting of risks.
- Analyses risk information and producing risk reports for relevant risk committees.
- Develops and supports the implementation of our risk policies, standards and risk appetite.
- Provides guidance and advice on regulatory laws, rules and industry standards
- Advises on policies, procedures, systems & controls to promote compliance within the business.
Third line of defence (Audit and Independent Assurance)
- Provides independent assurance on the design, effectiveness and implementation of the overall system of internal control, including risk management