SKY Harbor’s risk management and control framework is both embedded in our investment process and fully integrated in our operations and business management functions. The framework has four levels—Embedded, Systematic, Process Driven and Third Party— and has independent controls throughout.
Paramount to portfolio risk management is adherence to our disciplined investment process that focuses on analyzing investment risks, whether idiosyncratic or systemic. Each step is tailored to manage what we believe are the key risks associated with high yield investing.
Risk monitoring and reporting is performed on a daily, monthly, weekly and quarterly basis. In this pursuit SKY Harbor maintains a variety of proprietary quantitative risk management tools, both internally and externally sourced, to assist in the portfolio management and construction process. The design and effectiveness of operational controls is independently audited each year through a SOC 1 Type II examination.
SKY Harbor’s risk management framework is developed and overseen jointly by the Operations, Risk and Control Committee and the Chief Risk Officer.