The IACPM recently conducted its 2024 Concentration Limit Frameworks Survey. The Survey explores current practices in creating and structuring limit frameworks across various asset classes and jurisdictions, including governance, oversight, and enforcement processes. The Survey also looks at risk appetite frameworks and existing linkages between both frameworks.

Survey results show that risk appetite and concentration limit frameworks are of high priority among IACPM members and the industry generally. Post-COVID credit risk considerations and emerging risks such as climate and ESG are reshaping the financial landscape and intensify limit framework reviews.

Credit Portfolio Management’s role in carrying out firms’ risk appetite mandates continues to develop and expand. Concentration management remains one of CPM’s top priorities.

A public White Paper of key findings is available here.