Waddell & Reed Financial, a mutual fund company, has appointed Daniel Scherman as senior vice president of its investment adviser subsidiaries, Waddell & Reed Investment Management Company and Ivy Investment Management Company, in the newly created role of chief risk officer.

Scherman will be responsible for enhancing and executing policies and procedures related to investment risk management capabilities across the firm, providing comprehensive portfolio oversight, and serving as chair of the investment risk management committee. He will report to John Sundeen, senior vice president and chief administrative officer – investments and indirectly report to Sanders in his upcoming role as chief executive officer.

Among his previous experience, Scherman served for nearly 10 years as chief risk officer and portfolio manager at Janus Capital Group, and 13 years at MFS Investment Management, where he held the roles of global fixed income portfolio manager, equity portfolio manager, and senior quantitative analyst.