Risk consulting & monitoring

The latest financial crisis has clearly emphasised the need for all market participants to better understand, monitor and disclose their risks – in particular when investing in more complex products and strategies.

As a result regulators are now increasingly concerned about risk monitoring and transparency – and more risk and compliance monitoring will be imposed on the investment community going forward. UCITS IV new risk guidelines and requirements clearly illustrate this trend.

Investment managers, service providers and investors need to extend the scope and depth of their risk reporting and monitoring to better understand their overall risk as well as fulfil their regulatory reporting obligations.

Risk management covers many aspects which all need to be addressed in order to have a viable Risk Management Process:

• Compliance with investment limits and policy
• Exposures, leverage and concentration
• Market risk analysis (including stress testing)
• Model testing/monitoring and back testing
• Value at Risk, commitment and notional risk approach
• Liquidity risk
• Issuer and counterparty risk
• Operational risk
• Monitoring, responsibilities and escalation procedures

For further information about our Risk services please contact Isabelle Tykoczinski or Pierre Bourlatchka in our London office, or Killian Buckley in Dublin.