2.3 Risk management

Extract from the European Commission's request for advice:

"In line with the Delegated Acts adopted under Article 51(4) of the UCITS Directive, Article 50(1)(a) and (b) of the Solvency II Directive, Articles 15(5) and 19(11) of AIFMD and Article 16(12) of MiFID II risk management systems or procedures for risk assessment should be in place to monitor risks to which they are exposed. Financial market participants must employ risk-management processes which enable them to measure and manage at any time the risk of the positions and their contribution to the overall risk profile. Risk assessments should consider both financial and relevant sustainability risks. The valuation processes should therefore ensure a proper degree of consideration of relevant/material sustainability risks. The technical advices should describe the elements needed to ensure that financial market participants take into account sustainability risk effectively as well as the tasks to be fulfilled by the relevant