Statement on Risk Management
GCI Funds Pty Ltd (‘GCI’) is a provider of private credit lending to wholesale borrowers over three core innovative financing solutions: Asset Backed Finance, Real Estate and Strategic Capital. GCI founders and staff invest their own capital alongside that of our clients. This ensures a tangible alignment of our interests with that of our investors.
Whilst a measure of risk is inherent in all investment activities undertaken by us, we do not have any tolerance for intentional actions that breach the law, or are reckless.
The Board defines risk management as the identification and management of risks that could harm GCI (and its investment schemes). At a high level, risks can be classified as strategic, governance, operational, market and investment, and liquidity.
The Board of Directors (the ‘Board’) of GCI believes the management of risk is an ongoing and dynamic process, and good governance is inseparable from good business practices – particularly when the business of investing (being the sole purpose of our exitance) is about seeking to extract returns whilst being exposed to risk.
Responsibilities
In order to achieve its long-term objectives, GCI considers its risk appetite, and sets tolerances in order to measure and control the identified risks, and to set certain triggers in order to maintain the known measurable and acceptable risks within those specified bounds/tolerances.
The Board is also responsible for ensuring that the Company’s other key service providers operate within the Company’s approved risk appetite.
In addition, the Board has responsibility to ensure internal controls and arrangements are adequate for monitoring compliance with laws and regulations (applicable to the Company).
Risk Management Framework
Our Risk Management Framework is intrinsic to the operations of GCI, and our compliance with our regulatory obligations.
The Board is committed to continuing to develop a business culture that underpins the active role each staff member must play in the development and implementation of the Company approach to risk management.
Reviewing our Risk Management practices
The Company reviews its risk management and internal control frameworks at least every 12 months, or more frequently if there have been any material changes to our business and its operations.
The division of responsibility between the Board, the Company executive, and the operating divisions of the Company aims to ensure that specific responsibilities for risk management are clearly communicated and understood.