http://www.legislation.gov.uk/eur/2013/231/article/45Commission Delegated Regulation (EU) No 231/2013 of 19 December 2012 supplementing Directive 2011/61/EU of the European Parliament and of the Council with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision (Text with EEA relevance)Commission Delegated Regulation (EU) No 231/2013Commission Delegated Regulation (EU) No 231/2013 of 19 December 2012 supplementing Directive 2011/61/EU of the European Parliament and of the Council with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision (Text with EEA relevance)King's Printer of Acts of Parliamenthttps://webarchive.nationalarchives.gov.uk/eu-exit/https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02013R0231-20200401texttext/xmlen2025-04-03Expert Participation2025-02-27 CHAPTER III<Strong>OPERATING CONDITIONS FOR AIFMs</Strong>SECTION 3<Emphasis><Strong>Risk management</Strong></Emphasis><CommentaryRef Ref="key-cbcd7c281756a97c2ab8e51e83cd6871"/>...Risk measurement and managementArticle 451AIFMs shall adopt adequate and effective arrangements, processes and techniques in order to:aidentify, measure, manage and monitor at any time the risks to which the AIFs under their management are or might be exposed;bensure compliance with the limits set in accordance with Article 44.2The arrangements, processes and techniques referred to in paragraph 1 shall be proportionate to the nature, scale and complexity of the business of the AIFM and of each AIF it manages and shall be consistent with the AIF’s risk profile as disclosed to investors in accordance with rule 3.2.5(3) of the Investment Funds sourcebook.3For the purposes of paragraph 1, the AIFM shall take the following actions for each AIF it manages:aput in place such risk measurement arrangements, processes and techniques as are necessary to ensure that the risks of positions taken and their contribution to the overall risk profile are accurately measured on the basis of sound and reliable data and that the risk measurement arrangements, processes and techniques are adequately documented;bconduct periodic back-tests in order to review the validity of risk measurement arrangements which include model-based forecasts and estimates;cconduct, periodic appropriate stress tests and scenario analyses to address risks arising from potential changes in market conditions that might adversely impact the AIF;densure that the current level of risk complies with the risk limits set in accordance with Article 44;eestablish, implement and maintain adequate procedures that, in the event of actual or anticipated breaches of the risk limits of the AIF, result in timely remedial actions in the best interest of investors;fensure that there are appropriate liquidity management systems and procedures for each AIF in line with the requirements laid down in Article 46.Words in Ch. 3 Section 3 heading omitted (31.12.2020) by virtue of The Alternative Investment Fund Managers (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/328), regs. 1(3), 26(1) (as amended by S.I. 2019/325, regs. 1(3), 58); 2020 c. 1, Sch. 5 para. 1(1)Words in Art. 45(2) substituted (31.12.2020) by The Alternative Investment Fund Managers (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/328), regs. 1(3), 26(8) (as amended by S.I. 2019/325, regs. 1(3), 58); 2020 c. 1, Sch. 5 para. 1(1)