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1The liquidity risk measurement framework follows the same approach, estimating asset 2liquidity and future liquidity demands taking account of the portfolio’s strategy. This is 3calculated along different dimensions, such as the time to liquidate portfolio holdings, and the 4cost attributed to such liquidation.5A portfolio’s asset liquidity is measured by considering asset and market specific factors. 6Liquidity demand scenarios are estimated based on redemption and collateral call scenarios. 7In addition, liquidity stress tests are run to simulate the impact of stress conditions. Liquidity 8stress tests are also used to determine whether liquidity management tools shall be added to 9improve the management of the portfolio's liquidity risk under stress conditions.10A portfolio's current liquidity risk is assessed via a scoring system. In addition, each portfolio’s 11liquidity risk relative to investment strategy and redemption obligations is reviewed through a 12formal annual risk review process. 13Metrics are calculated and updated with the latest trading and market data, which are 14available on our portfolio management systems for first and second line of defence staff. 15The risk management function regularly monitors the portfolio's limit utilizations. The limit 16structure consists of regulatory and internal limits as well as thresholds. Escalation chains and 17contingency planning are included within the liquidity framework. 18Fiduciary Investment Risk in Alternative Asset Classes 19Whereas market prices are available daily for traditional assets, alternative assets are in most 20cases far more illiquid, or prices are not directly observable. In these cases, regular 21measurement and control processes are undertaken on a monthly or quarterly basis rather 22than daily.23The methodology for alternative risk management requires expertise in the asset acquisition 24process, credit analysis where appropriate, regular stress testing, and calculation and 25monitoring of leverage, where applicable. 26We have defined appropriate criteria to measure risk. Different alternatives sub-asset classes 27have different criteria, e. g. real estate, infrastructure, private debts, private equity and fund of 28funds. Thresholds are established, and consumption reported regularly to management.29Identification of Risk in Alternatives 30The risk management function is responsible for identifying material portfolio risk, which is 31defined as the risk of decreasing market values of the portfolio positions. This risk is 32considered material if it leads to a significant loss for the investor with a sufficient probability. 33Due to changing market conditions and volatilities as well as trading activities, the market risk 34for a given portfolio changes over time. In addition to traditional market risks, special 35alternatives risks include interest rate risk, FX risk, volatility risk, inflation risk, real estate risk 36and credit risk. 37Internal thresholds are implemented for the relevant criteria at the individual asset level, 38contract and the entire portfolio level. Portfolio levels close to the warning threshold are 39regularly discussed and notified to the respective Alternatives Investment Committees or 40Boards of the management companies, whereas individual assets are monitored separately. 41The monitoring of individual assets may be triggered by reaching internal thresholds or by 42violation of contractually defined limits. In these instances, an asset is included in a watch list 43jointly overseen by portfolio management and risk management with regular monitoring of 44any mitigating actions. If investments further deteriorate, work-out specialists or additional 45stress scenarios will be considered.46Fiduciary Sustainability Risk Management47We identify and assess the level of sustainability risk taken by illiquid alternatives funds 48domiciled in Europe based on individual asset level risk scores or ratings, which are formed by 49both quantitative and qualitative data points. These can be based on external ESG data 50providers (e. g., S&P Global for real estate, Global Real Estate Sustainability Benchmark for 51infrastructure), as well as internal subject matter experts.52These processes were further enhanced in 2023 which includes determining a fund’s risk 53appetite, measurement and monitoring of the scores and their reporting.54Liquidity Risk Management 55Liquidity risk is the risk arising from potential inability to meet investor redemptions or other 56liquidity demands within a requested time period (liquidation period). Liquidity risk arises due 57to expected or unexpected investor redemption or other liabilities for payment. Examples of 58liquidity risk include settlements of foreign exchange forward transactions or margin calls 59which must be met by the current cash positions and/or by selling assets to generate cash. 60Hence the liquidity risk management framework considers both the specific liquidation risk of 61the individual investments and the overall risk of the portfolio to generate liquidity. Within 62        63To our Shareholders Summarised 64Management Report65Consolidated 66Financial Statements Compensation Report Corporate Govern-67ance Statement68Supplementary 69Information DWS 2023 Annual Report70 71Risk Report7256 Fiduciary Investment Risk73The secret landmark is the "Statue of Liberty".