Build or Buy Risk System:::______ |
|
| About:- |
| Build or Buy Risk System??That is the question that is consistently on the minds of Portfolio Managers, Managing Partners and Investor Relation Personnel who want to Raise new assets to take advantage of the market opportunities and blow away their competitors. |
| Two important characteristics defining the alternative investment environment today are the continuously growing competition for investors’ funds and elevated skepticism. |
Both have had a significant impact on the efforts by hedge funds of all sizes to acquire and demonstrate sustainable competitive advantages and RAISE ASSETS. |
| Implementation of institutional level infrastructure has become imperative for the money managers who want to demonstrate their RISK Management diligence to their prospects. Since risk management system has always been an important part of the infrastructure, the question “Why to have risk management system?” has been replaced by the question “Buy or Build Risk Management System?” |
|
|
| Objectives:- |
| A lot of Hedge Fund Managers large and small consider Risk Management to be simply position sizing, beta limits and extensive due diligence. While those are very important things, perhaps most important to fundamental investors, the recent market turmoil has driven a need for more robust Risk Systems. |
| It’s no longer enough to say “we manage risk” but now one must say we use these Risk Systems. A lot of the time, larger hedge funds build Risk Systems as well as buy standardized risk systems, but for an up and coming manager the question remains whether they should Buy or Build Risk System and how to get the best ROI out of their investment. |
| Don’t miss out on your opportunity to convert your most timid prospective investors into your biggest allocators! Learn the pros and cons in our white paper “Build or Buy Risk System” and make the decisions necessary to get you the assets you want today. |
|
|
| Why? |
| When the alternative investment space becomes more and more competitive, the investment manager needs not only to demonstrate good returns, but also to assure investors of his control over the portfolio. That translates into continuously monitoring portfolio’s financial health and ability to spot the red flags before they turn into problems. However, holding the hand on the pulse of your investment vehicle can become costly as it diverts significant time and resources from the strategy building. |
Automated risk management systems become a useful tool to generate the “ECG” of the portfolio, as they deliver the risk parameters of interest automatically and do not require recalculations. However, the investment manager deciding to automate risk management process might face some tough issues: |
| - How to handle risk systems build out fast, cheaply, and without disclosing unnecessary information? |
| - How to compromise between the sophistication of the risk management systems and their expensiveness? |
| - How to leverage the risk systems to improve the investment performance and communicate risks to current and perspective investors? |
|
|
| Benefits:- |
| By performing full and partial risk management systems build out, including the development of data warehouse and transparency and reporting systems money managers can get the edge they need. Built to meet the best standards of risk management industry, risk models drill down by position level, sector level, asset class, country, region, manager, liquidity, and duration, and interpret VaR, Marginal VaR, Beta, Stress characteristics and even Alpha over pre-set indexes can give prospective investors the necessary “push” to invest. |
| Many providers of risk management software and services try to fit customers’ issues into their existing risk models and, as the result, their solution is nothing but a straight jacket that limits the client’s functionality, requires additional adjustment, expensive training, and lengthy transitional period. Thus vendors that can customize Stress Testing and work in tandem with the client’s team to design a risk system according to unique specifications become extremely helpfull. |
| Changing correlations between the factors affecting portfolio performance require money manager to adjust their risk models to a new environment, and consistently upgrade the risk system according to new requirements. Moreover it is important to use an international firm with global resources, which can remain accessible 7 days a week, 24 hours a day to answer any questions related to the model’s output and functionality. |
| Oftentimes, as the customization and level of customer service increases, so does the price. By choosing a consultant with an established system of subcontractors and offices in efficient countries known for high ROI outsourcing, savings will get passed on to you and as the result you will receive a sophisticated risk management systems, developed by professionals with advanced degrees and years of experience, at a much lower price. |
| |
| Fill out your info and we will email our white paper! |
|
|
|
|
 |
|
|
|