The directors of the firm, in addition to the risk mapping structure of the ICAAP, are very much involved with the day to day running of the firm including the continual assessment of risk. They meet on a regular basis to discuss current projections for profitability, regulatory capital management, business planning and risk management. The directors manage the firm's risks through a framework of policy and procedures having regard to relevant laws, standards, principles and rules (including FCA principles and rules) with the aim to operate a defined and transparent risk management framework. These policies and procedures are updated as required.

The firm is relatively small with an operational infrastructure appropriate to its size.

The ICAAP has identified the most significant risk types to which Atlantic House Investments Limited to be as follows:

 

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Operational Risk:

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This is the risk associated with inadequate, or the failure of, internal processes or external factors such as regulation.

The legislative and political environment that Atlantic House Investments Limited operates in could be made more restrictive therefore reducing or removing profitability. Mitigation is that other systems are available to structure the business should the current business model become unavailable or impractical to use.

People risk is mitigated by a flexibility of the work force to cover each key member's responsibilities with no individual being critical to the company.

IT risk is mitigated with daily backups, remote access and an efficient business continuity plan.

 

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Business Risk:

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This is the risk that external factors, such as a fall in market appetite will result in an unexpected loss.

A slowing economic environment could lead to a lessening appetite for the funds that Atlantic House Investments Limited act as investment advisor. This is mitigated by a low cost structure, flexible working arrangements and expanding funds under management.

Reputational risk could be involved if Atlantic House Investments Limited gets involved with a fund that fails. This is mitigated by only marketing the firm's funds.

 

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Liquidity Risk:

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This is the risk that Atlantic House Investments Limited will have insufficient funds to meet their capital requirements.

Atlantic House Investments Limited is sufficiently financially robust to suffer a long period without any income generation and have the ability to raise further capital, should they so require.

 

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Concentration Risk:

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This is the risk that either too much of Atlantic House Investments Limited's business is concentrated in too small a sphere of operation or that the client base is concentrated in too few accounts.

Atlantic House Investments Limited currently has an extensive client base within their funds. The sector of the business is very specialised but it is considered that there will always be a requirement for these types of funds.