(1) An AIFM shall separate, functionally and hierarchically, the functions of risk management from the operating units, including from the functions of portfolio management.
(2) The functional and hierarchical separation of the functions of risk management in accordance with the paragraph (1) shall be reviewed by the Bank in accordance with the principle of proportionality.
(3) For the purposes of a review under paragraph (2), the AIFM shall, in any event, be able to satisfy the Bank that specific safeguards against conflicts of interest allow for the independent performance of risk management activities and that the risk management process satisfies the requirements of this Regulation and is consistently effective.
(4) An AIFM shall implement adequate risk-management systems in order to identify, measure, manage and monitor appropriately all risks relevant to each AIF investment strategy and to which each AIF is or may be exposed.
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