Which of the following does not fall under a risk control model approach?

• A. Investigating investment analysts
• B. Performing checks on compliance personnel
• C. Evaluating marketing effectiveness
• D. Assessing non-investment focused staff

Answer: (C)

The focus of a risk control model is primarily on identifying, managing, and mitigating risks that could impact an investment firm’s operations and performance. Options that involve direct scrutiny of investment processes, compliance, and risk management personnel are consistent with this approach.

Evaluating marketing effectiveness, on the other hand, falls outside of the traditional scope of risk control models. While effective marketing can influence an investment firm’s success, it does not directly address the risks associated with investment decision-making or compliance issues. Thus, assessing marketing effectiveness is not a typical component of a risk control model, as it primarily focuses on support functions rather than management of investment-specific risks or compliance controls.