Key Trends In Buy-Side Risk Management

Responsive risk management is especially important at the moment. The financial markets are encountering new frontiers that have both positive investment opportunities as well as displaying volatile, non-intuitive behavior. Central Banks and regulators are very proactive which is leading to intended and unintended consequences. This report will focus on the buy-side impact of these trends and what they mean for buy-side risk management.

The Key Trends in Buy-side Risk Management 2015 survey from Chartis, sponsored by SunGard, found that 89% of respondents view risk management as an integral and crucial component of investment strategy. However, a large disparity exists between participants understanding the importance of risk and the reality of day-to-day execution within their firms.

The top three areas of concern and where firms would benefit most if improved were:

  • Better transparency and interactivity of risk analytics for portfolio managers (90%)
  • Improved data granularity and on-demand frequency of risk reporting (87%)
  • Multi-asset class risk systems (79%)