Bozano Investimentos has an independent risk analysis department, which is responsible for monitoring each fund’s positions on a real-time basis. The methodology used evaluates the risk of each individual position (using both stress test and VaR analysis), as well as the risk of the portfolio as a whole. We seek to align levels of risk to capital and operational capacity. The methodology used to identify and evaluate market, credit, liquidity and operational risks is in line with best global market practices, policies and procedures.
The risk management department reports directly to the firm’s Executive Committee. The risk management team is completely independent from the other operational areas of the firm and is subjected periodically to internal audits.