When performing a risk review, which question is most relevant?

The most relevant question during a risk review is focused on how the fund manager measures and manages risk. Understanding the risk management practices of a fund is crucial because it sheds light on the strategies and tools the manager employs to mitigate potential losses and navigate market volatility. This approach encapsulates the essence of risk management, which is not merely about identifying risks but also about how to respond to them effectively.

By knowing the methodologies—such as Value at Risk (VaR), stress testing, scenario analysis, and diversification strategies—employed by the fund manager, stakeholders can gain valuable insights into the fund's resilience to adverse outcomes. This understanding is vital for assessing the overall risk profile of the investment and how closely it aligns with an investor's risk tolerance.

While the other options provide useful context about the fund, they do not directly address the operational aspect of risk management, which is critical in a risk review. For example, having knowledge of the fund’s investment strategy, target market, and types of securities does not inherently convey how the fund manager is equipped to face various risk factors. Therefore, the focus on measuring and managing risk stands out as the most pertinent question in the context of a risk review.