Are you investing in risk technology this year? If so, do you have an integrated or enterprise risk management strategy in place?
There is no doubt that the financial crisis has pushed risk management to the forefront of all agendas as financial institutions look to implement risk programs to better withstand future market turmoil.
Regulatory reform, consequent compliance and reporting requirements, combined with greater demand from investors for transparency, is further driving investment managers to fill in gaps in risk management processes revealed by the credit crisis. Some such areas of enhancement are the management of counterparty risk, market risk and liquidity risk.
As consequence, financial institutions are investing in risk technology, including buy-side institutions that have traditionally not invested as heavily in risk management. Despite this investment, research shows many investment managers and hedge funds lack a broad, integrated risk management strategy to enhance risk mitigation processes in for various types of risks.
Of course there are some investment managers and hedge funds that are implementing a broader risk program that encompasses wider organisational change, investment in supporting infrastructure and new technology. Thus, some improvements in the management of multiple types of risk, including traditional risks areas such as market risk, credit risk and liquidity risk, are underway as firms seek to adopt more sophisticated risk management tools, such as stress testing.
It comes as no surprise that increasingly ‘enterprise risk” is becoming much more of a buzzword as the correlation between risks types and the impact of combined risks on a firm is much more apparent post credit crisis. The design and implementation of an enterprise risk management strategy is a huge undertaking but buy-side firms are beginning the project research now. The question for most investment managers today isn’t what to do but where to begin.
For some firms, improvements in specific areas, such as the additional use of stress testing in addition to Value at Risk (VaR) measurement, are fairly straight forward, but with budgets limited and ongoing market volatility, many buy-side firms require assistance in devising successful improving risk management procedures in both the short and long term. A more integrated risk management strategy is the only way to address inefficiencies in existing infrastructure whilst also strengthening a firm’s ability to better manage future market crosses.
In a Webinar hosted by June 17th by DerivSource, we have a panel of senior risk management experts who will share their insight into the building of a successful risk management strategy post financial crisis.
During this event, Ed Hida of Deloitte will share the top findings of the Deloitte 2009 Global Risk Management Survey, which surveyed over a hundred financial institutions globally to assess the common trends in changing risk management practices. Do you want to know how many firms actually have an enterprise risk management strategy? Are you curious about how frequent other buy-side firms actually execute market stress tests? Tune into the Webinar to hear these findings.
The Webinar panel also consists of senior risk managers from a hedge fund and two investment management companies. The panel will share their experiences in building better risk governance plans and procedures in light of new regulation and market environment. The discussion will focus on new best practices for managing multiple types of risks whilst also meeting new demands from regulators and investors.
Our panel speakers include:
Edward Hida, Global Leader, Risk & Capital Management; Partner, Deloitte
Michelle McCarthy, MD, Director of Risk Management, Nuveen Investments
Melissa van Hees, Chief Risk Officer, Concordia Partners
Barry Hadingham, Senior Manager – Derivatives, Aviva Investors
The Key topics to be covered by our panel include:
Enterprise Risk Management – what does this actually mean? Is an ERM plan feasible and if so, what would such a strategy look like for an investment manager or hedge fund? What are some of the better tools to view risks across all risk types (credit, market, liquidity risk) firms can utilize to build a better risk program?
Risk Management Differences – what is the difference between risk management for the buy side and sell side? What can the buy side learn from the sell side in establish a better risk management program?
Regulation – what risk related procedures will be enforced by regulators in both the US and Europe? How can buy-side firms ensure they comply with new rules?
Best practice in Credit Risk and Management of Counterparty exposures? How should buy-side firms be improving their credit risk management post crisis? What are some ways investment managers are improving management of counterparty risks?
Risk Management & Collateral Management – how to improve integration of counterparty risk management and collateral management? How are investment managers improving related processes such as reconciliation?
Improving Management of Market Risk – how can investment managers improving monitoring of market risks?
Operational Challenges in Developing a Risk Program – what are the main challenges in risk management rebuilds? How are firms managing data management and integration of systems and department communication?
Format: Webinar
Date: 17 June 2010
16.00-17.15 BST (London/Dublin)
17.00-18.15 CET (Paris/Berlin)
11.00-12.15 EST (New York/Boston)
08.00-09.15 PST (San Francisco/Los Angeles)
DerivSource Members get 50% off both individual and corporate passes. Please use the discount code "DerivSource’ when registering.
To register: https://www.regonline.co.uk/risk_June2010
For questions regarding the program or speakers, please contact Julia Schieffer on julia@derivsource.com.
