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In this issue of Asset Management News we highlight some of the emerging ‘best practice’ risk management standards. In our general stories section, we also provide views about topical trends and events across the globe.
Whether in Europe, the US or Asia, the financial crisis has revealed quite how inadequate accepted risk management practice was. In particular, by focusing on portfolio risks our sector was only mitigating a proportion of the risks faced.
Counterparty, liquidity and even fraud risks have emerged as posing as much danger as portfolio risk. Indeed, the former three areas are capable of destroying a firm’s reputation even more quickly than poor investment performance. We live, therefore, at a time of heightened risk awareness, when asset managers are seeking to tackle a far wider set of risks across all operations.
Regulators, too, are striving to mitigate previously underestimated dangers. This is resulting not only in greater regulation, but also in more enforcement action across all of the major financial centres.
