The monitoring of a position is the careful watching and supervision of all open positions.
Monitoring can be passive or lead to proactive management.
Typically, the risk manager is passive in that actions to adjust risk are taken by others. Here, the risk manager makes recommendations but does not implement actual position taking to reduce exposures. However, this old method of risk management is gradually being changed into a more proactive function. 1998-2000 Barkley International Inc. All Rights Reserved. Last Modified on Saturday, June 09, 2001.