LO 69.3: Identify sources of risk consciousness within an organization.

LO 69.3: Identify sources of risk consciousness within an organization.
The increasing sense of risk consciousness within and among organizations is mainly derived from the following three sources: 1. Banks who lend funds to investors are concerned with where those funds are invested.
2 . Boards of investment clients, senior management, and plan sponsors have generally become
more versed in risk management issues and more aware of the need for effective oversight over asset management activities.
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2018 Kaplan, Inc.
Topic 69 Cross Reference to GARP Assigned Reading – Litterman, Chapter 17
3.
Investors have become more knowledgeable about their investment choices. For example, beneficiaries of a defined contribution plan are responsible for selecting their individual pension investments.

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