Investment Governance and Fiduciary Risk Training Course

Investment Governance and Fiduciary Risk Training Course

Introduction

The modern investment landscape is defined by systemic risk, heightened regulatory scrutiny, and the increasing integration of ESG (Environmental, Social, and Governance) factors. Effective investment governance is no longer a check-the-box exercise but a critical determinant of long-term investment success and the fulfillment of fiduciary duty. Investment Governance and Fiduciary Risk Training Course addresses the essential frameworks, policies, and practices required to navigate this environment, ensuring alignment between investment strategy, organizational values, and legal compliance. It moves beyond theoretical concepts to provide actionable insights into establishing and auditing robust governance structures, managing delegation, and mitigating complex fiduciary risk exposures, including those related to climate-related financial risk and cyber resilience.

This intensive program empowers financial professionals, trustees, and executives to implement a high-performance governance model. By focusing on the core principles of due diligence, transparency, and accountability, participants will master the skills needed to design a resilient Investment Policy Statement (IPS), effectively oversee third-party managers, and manage conflicts of interest. The curriculum is built around real-world case studies of fiduciary failures and best-practice implementation, enabling a proactive approach to risk mitigation, thereby protecting organizational assets and reputation while safeguarding the long-term interests of beneficiaries and stakeholders.

Course Duration

5 days

Course Objectives

Upon completion of this course, participants will be able to:

1. Define and apply the core principles of Fiduciary Duty in a modern, multi-jurisdictional context.
2. Design, implement, and audit a Best-Practice Investment Governance Framework
3. Develop a Risk-Budgeting and strategic Asset-Liability Management (ALM) strategy aligned with long-term goals.
4. Master the critical elements of a Resilient Investment Policy Statement (IPS), including mandated periodic reviews.
5. Assess and integrate Systemic Risk factors, specifically Climate-Related Financial Risk, into portfolio construction.
6. Navigate the complexity of ESG Integration and Sustainable Investing to meet beneficiary and regulatory mandates.
7. Establish robust processes for the Selection, Monitoring, and Oversight of third-party Fiduciary Managers.
8. Identify, evaluate, and mitigate key Fiduciary Risk exposures, including Operational Due Diligence and cyber risk.
9. Manage and disclose Conflicts of Interest and related-party transactions with utmost transparency.
10. Apply principles of Behavioral Finance to decision-making to minimize committee and cognitive biases.
11. Understand and comply with current global and regional Regulatory Compliance requirements
12. Conduct a comprehensive Governance Audit to benchmark current practices against industry standards and legal requirements.
13. Drive a strong Culture of Compliance and Accountability across the investment and oversight functions.

Target Audience

1. Pension Fund Trustees and Fiduciaries
2. Investment Committee Members of Endowments, Foundations, and Corporations
3. Chief Investment Officers (CIOs) and Senior Investment Staff
4. In-House Legal, Risk, and Compliance Professionals in Asset Management
5. Internal and External Auditors specializing in Investment Operations
6. Wealth Managers and Financial Advisors serving institutional and high-net-worth clients
7. Board Directors responsible for oversight of organizational assets
8. Consultants providing Investment Governance and Fiduciary advice

Course Modules

1. The Foundation of Fiduciary Duty and Governance

• Defining the core Duty of Care, Duty of Loyalty, and Exclusive Purpose Rule.
• Mapping legal and regulatory sources of fiduciary obligation
• Establishing the optimal Governance Structure
• The role of the Fiduciary Charter and its link to organizational mission.
• Case Study: Analysis of a major ERISA litigation illustrating the cost of loyalty failure.

2. Crafting the Investment Policy Statement (IPS)

• Mandatory and best-practice components of a legally and operationally sound IPS.
• Integrating Risk and Return Objectives with the fund's time horizon and liquidity needs.
• Formulating clear policies on Strategic Asset Allocation and rebalancing.
• Inclusion of ESG and Responsible Investment criteria within the IPS mandate.
• Case Study: Reviewing an "out-of-date" IPS leading to poor performance and an internal dispute on active management boundaries.

3. Fiduciary Risk Management and Oversight

• Developing an enterprise-wide Fiduciary Risk Assessment and mitigation matrix.
• Analyzing risks in investment implementation.
• Identifying and controlling Operational Due Diligence risks
• Mitigating non-traditional risks.
• Case Study: Fiduciary failure related to a lack of ODD on a hedge fund or private equity manager, resulting in significant loss.

4. ESG and Sustainable Fiduciary Practices

• The legal interpretation
• Implementing Double Materiality and addressing both 'inside-out' and 'outside-in' impacts.
• SFDR, TCFD/ISSB, and the shift towards mandatory disclosure.
• Managing Greenwashing Risk through robust due diligence on fund labels and claims.
• Case Study: Fiduciary committee debate on divesting from a high-carbon sector analyzing the financial and reputational implications of the decision.

5. Delegated Fiduciary Management and Oversight

• Structuring the relationship.
• Establishing a rigorous Manager Selection and Request for Proposal process.
• Defining clear Delegation Boundaries and maintaining oversight rights.
• Performance Monitoring beyond raw returns.
• Case Study: Analyzing a flawed OCIO mandate where the fee structure and performance benchmark created misaligned incentives.

6. Managing Conflicts of Interest and Prohibited Transactions

• Defining and identifying actual, potential, and perceived Conflicts of Interest in investment decisions.
• Establishing policies for disclosure, avoidance, and independent ratification of conflicts.
• Reviewing common problematic scenarios.
• The importance of an independent Investment Consultant and governance advisor.
• Case Study: A situation involving a trustee holding a board position at an asset management firm bidding for the fund's mandate.

7. Governance Audits and Continuous Improvement

• Designing and executing a comprehensive Investment Governance Audit program.
• Benchmarking governance practices against peer groups and global standards
• Developing effective Decision Records and robust meeting minutes for defensibility.
• Strategies for achieving a high-functioning, non-executional Investment Committee.
• Case Study: A regulatory review finding insufficient documentation and decision trails, leading to a penalty and required remediation plan.

8. Behavioral Finance and Governance Culture

• Understanding cognitive biases in group decision-making.
• Implementing "De-Biasing" techniques and protocols in committee meetings.
• Fostering a Culture of Proactive Risk Reporting and psychological safety.
• The role of executive leadership in setting the Tone from the Top on ethics and compliance.
• Case Study: A post-mortem of a panic-driven asset sale during a market downturn, driven by committee herding bias and lack of a pre-established protocol.

Training Methodology

This course employs a participatory and hands-on approach to ensure practical learning, including:

• Interactive lectures and presentations.
• Group discussions and brainstorming sessions.
• Hands-on exercises using real-world datasets.
• Role-playing and scenario-based simulations.
• Analysis of case studies to bridge theory and practice.
• Peer-to-peer learning and networking.
• Expert-led Q&A sessions.
• Continuous feedback and personalized guidance.

Register as a group from 3 participants for a Discount

Send us an email: info@datastatresearch.org or call +254724527104 

Certification

Upon successful completion of this training, participants will be issued with a globally- recognized certificate.

Tailor-Made Course

 We also offer tailor-made courses based on your needs.

Key Notes

a. The participant must be conversant with English.

b. Upon completion of training the participant will be issued with an Authorized Training Certificate

c. Course duration is flexible and the contents can be modified to fit any number of days.

d. The course fee includes facilitation training materials, 2 coffee breaks, buffet lunch and A Certificate upon successful completion of Training.

e. One-year post-training support Consultation and Coaching provided after the course.

f. Payment should be done at least a week before commence of the training, to DATASTAT CONSULTANCY LTD account, as indicated in the invoice so as to enable us prepare better for you.