Risk Management Framework
Comprehensive approach to identifying, assessing, and mitigating risks while protecting family capital and ensuring sustainable long-term growth.
Our Risk Philosophy
We view risk management not as a constraint, but as a competitive advantage that enables us to pursue opportunities with confidence and discipline.
Core Principles
Capital Preservation First
Protecting principal capital is our highest priority
Calculated Risk-Taking
Taking smart risks where we have competitive advantages
Risk-Adjusted Returns
Maximizing returns per unit of risk taken
Continuous Monitoring
Active risk assessment and adaptive management
Risk Categories
Systematic identification and management of risks across all aspects of our investment operations.
Market Risk
Potential losses from market movements, economic conditions, and systemic factors affecting investment values.
Credit Risk
Risk of default by borrowers, counterparties, or investee companies failing to meet their financial obligations.
Operational Risk
Risk of losses from inadequate internal processes, systems failures, or human errors in investment operations.
Regulatory Risk
Risk from changes in laws, regulations, or compliance requirements affecting investment operations and returns.
Concentration Risk
Risk from over-exposure to specific sectors, geographies, or investments that could magnify losses.
Reputational Risk
Risk to family office reputation from investment decisions, business practices, or external associations.
Risk Management Process
Our systematic approach to risk identification, assessment, monitoring, and mitigation.
Risk Identification
Systematic identification of potential risks across all investment activities and operations.
Risk Assessment
Quantitative and qualitative evaluation of risk likelihood, impact, and correlation.
Risk Monitoring
Continuous tracking of risk indicators and early warning systems for emerging threats.
Mitigation Strategy
Implementation of specific measures to reduce, transfer, or accept identified risks.
Review & Adapt
Regular review of risk framework effectiveness and adaptation to changing conditions.
Mitigation Strategies
Specific approaches we use to manage and reduce different types of investment risk.
Portfolio Diversification
Spreading investments across uncorrelated asset classes, sectors, and geographies to reduce portfolio volatility and protect against systemic risks.
Key Measures:
- • Maximum 10% allocation to single investment
- • 3+ uncorrelated asset classes
- • Geographic diversification across SEA
- • Regular rebalancing to target weights
Comprehensive Due Diligence
Rigorous investigation and analysis of potential investments covering financial, legal, operational, and market aspects before commitment.
Due Diligence Areas:
- • Financial modeling and scenario analysis
- • Legal and regulatory compliance review
- • Market opportunity assessment
- • Team background and capability verification
Active Risk Monitoring
Real-time monitoring of portfolio performance, risk indicators, and early warning systems to identify and respond to emerging risks promptly.
Monitoring Tools:
- • Weekly portfolio risk dashboards
- • Key risk indicator (KRI) tracking
- • Automated volatility monitoring
- • Quarterly risk assessment reports
Governance & Oversight
Clear governance structures with defined roles, responsibilities, and decision-making processes to ensure accountability and oversight.
Governance Elements:
- • Investment committee approval process
- • Risk management committee oversight
- • Clear delegation of authority limits
- • Regular audit and compliance reviews
Risk Metrics & Monitoring
Key performance indicators and metrics we track to monitor portfolio risk and ensure adherence to risk management policies.
Portfolio Volatility
Annualized standard deviation
Sharpe Ratio
Risk-adjusted returns
Success Rate
Portfolio performance
Compliance Rate
Risk policy adherence
Risk Governance Structure
Clear organizational structure and reporting lines for effective risk management oversight and accountability.
Family Council
Ultimate oversight authority with responsibility for setting risk appetite, approving major risk policies, and ensuring alignment with family values.
Risk Management Committee
Dedicated team responsible for risk assessment, monitoring, and reporting across all investment activities and operational functions.
Investment Committee
Primary decision-making body for investment risks, responsible for deal evaluation, portfolio construction, and risk-return optimization.