Which of the following is NOT a requirement of risk governance according to GIRM?

Risk governance, as outlined by the Global Investment Performance Standards (GIPS), emphasizes the importance of establishing a robust framework for managing risks effectively. The key elements of this framework typically include a clearly defined governance structure that delineates roles and responsibilities, the necessary infrastructure to support risk management processes, and a well-established methodology for identifying, assessing, and mitigating risks.

Financial forecasting, while important for overall financial planning and analysis, does not specifically fall under the core requirements of risk governance as defined by GIRM. It pertains more to anticipating future financial performance rather than managing risks directly. This distinction makes it clear why financial forecasting is not considered a requirement in the context of risk governance frameworks. The focus is primarily on creating the structures, systems, and methods to effectively manage and govern risks rather than predicting financial outcomes.