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%)