How we manage risk and compliance

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. 

  • Challenge risks effectively

  • Proactively add value by providing advice and guidance

  • Support the delivery of clients' long-term needs

 

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

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Ciaran Mulligan, Head of Manager Oversight at T&IO, discusses his role and provides insight into our internal and external governance and due diligence processes

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"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company. The Prudential Assurance Company and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc, a company incorporated in the United Kingdom. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.