Risk Consulting

Whether you are setting up a new risk management function or up-grading the function that already works:

  • Align risk management with front-end decisions to achieve a substantial risk function that delivers genuine insights into what is really driving your performance.
  • Enhance your performance by aligning risk with your active returns.
  • Eliminate unwanted risk before it is too late.
  • Set risk targets, tolerances and controls that don’t impede performance.
  • Choose the risk system and settings that are right for your investment strategy. The priciest is not always the best.
  • Demystify stress tests and design worst-case tests that tell you what you need to know.
  • Define reports that show clearly which portfolio elements contribute to risk and which are diversifiers.
  • Design and document practical and relevant risk policies.
  • Audit risk management procedures.

Some projects completed recently include:

  • Advised a large institutional investment manager on design and methodology of a process to measure and manage extreme risk to complement their existing routine risk management function. Seven systems were evaluated in detail and scored on five criteria. From this the recommendation was made to extend the application of a system already deployed in-house. An appropriate set of recommendations about how this would be achieved was presented and accepted.
  • Helped a large retail investment manager resolve an audit action to provide accurate risk analyses for a large number of funds. Evaluated the existing risk measurement methodology and procedure for economic validity and robustness and recommended improvements to the current process and methodology for further consideration and future implementation. This time-critical action was delivered and accepted more than two weeks ahead of schedule and within the original cost estimate.
  • Evaluation of the efficacy of risk models. The analysis compared forecast measures such as portfolio volatility, tracking error, beta to benchmark and VaR with corresponding observed measures. It facilitates comparison of the validity commercially-available risk models and modeling techniques.
  • Coordinated the successful application for FSA Authorisation.

Outsourced risk management

  • A cost-effective, one-stop solution for budding stars.
  • The benefits of a professional Chief Risk Officer and risk reporting suite designed for you without adding headcount.
  • Takes care of day-to-day risk measurement and reporting, presentation to prospective investors and due diligence documentation and presentation.
  • You pay only for what you need and your risk management grows with you.
  • When you are ready to set up your own risk management we can help with that too.