Geopolitical Risk Management for Investment Funds

In an increasingly interconnected world, geopolitical developments have become a key driver of market volatility, regulatory change, and investment performance. From international conflicts and trade disputes to sanctions, elections, and shifts in global power dynamics, geopolitical events can have significant implications for investment funds, their portfolios, and their operating environment.

This training provides participants with a practical understanding of geopolitical risk and its relevance to the investment fund industry. It explores the main sources of geopolitical risk, their potential impact on financial markets and investment strategies, and the approaches that fund managers and risk professionals can use to identify, assess, monitor, and mitigate these risks.

By the end of this training, participants will be able to:

• Understand the key drivers and dimensions of geopolitical risk, and how states use geo-economic tools to pursue strategic objectives.
• Distinguish event-driven shocks from structural trends such as geo-economic fragmentation, and how each one is managed  
• Assess how geopolitical risk materialises differently across asset classes and investment strategies.
• Evaluate geopolitical risk indicators and scoring methodologies, and their limitations.  
• Integrate geopolitical risk into fund's risk management framework, risk appetite statement and governance, in line with supervisory expectations.
• Apply the Market-Driven Scenarios (MDS) framework to calibrate geopolitical stress scenarios.
• Design geopolitical risk identification, measurement, mitigation, monitoring and reporting arrangements.

Fund managers, risk managers, investment professionals, compliance officers, board members, and anyone seeking to understand the impact of geopolitical developments on investment funds.