How can family offices ensure that private debt managers have adequate risk management procedures in place

Family offices can ensure that private debt managers have adequate risk management procedures in place by taking the following steps:

Regular assessments: Family offices should conduct regular assessments of the manager’s risk management plan to ensure that it is up-to-date and effective 1 .

Understand the risks: Family offices should have a clear understanding of the risks associated with private debt investments and the strategies that the manager has in place to mitigate those risks 2 3 .

Evaluate the manager’s risk management framework: Family offices should evaluate the manager’s risk management framework to determine if it is robust and effective in managing operational risks 1 4 .

Assess the manager’s expertise: Family offices should assess the manager’s expertise in the private debt market and their ability to manage operational risks 2 3 .

Understand the investment strategy: Family offices should have a clear understanding of the manager’s investment strategy and how it aligns with their risk management plan 2 .

In summary, family offices can ensure that private debt managers have adequate risk management procedures in place by conducting regular assessments, understanding the risks, evaluating the manager’s risk management framework and expertise, and having a clear understanding of the investment strategy.