Hedge Funds: Are You Managing All The Risks?

Are you managing

all the risks?

Hedge Funds:

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Managing risk is a

critical focusfor all fundmanagers.


But hedge fund managers face

historical risksemerging risks.

as well as new


MarketRisk

CreditRisk

LiquidityRisk

ReputationRisk

CounterpartyRisk

Country, Currency,Political

Risk

Issuer /NameRisk

OperationalRisk

What’s it take tomanage that risk?

5 hurdlesHere are

to effectiverisk management.


Finding and reporting on

The tendency of portfolio managers to work independently, combined with IT system limitations, can result in asset-class silos operating within a firm,

making it difficult to obtain an accurate enterprise-widepicture of exposure.

1 firm-wide positionsacross asset classes.


Evaluating and quantifying2

With trading speed constantly accelerating, evaluating the risk counterparties pose—and the resulting threat of defaults—

at any given moment becomes a monumental undertaking.

counterparty risk.


Reconciling datafrom various counterparties.3

Getting accurate data in a timely, automated fashion from a myriad of trading counterparties and back-office service providers can be difficult

and time consuming. The firm then needs to reconcile the data received and address outstanding issues, further complicating the task.


Real-time data feeds, trade information and position monitoring are not always available, especially when dealing in emerging markets.

real-timeexposure reporting.

4


Difficulty getting

risk and

Determining the fair value of an infrequently traded, custom-builtOTC derivative or complex loan product can be problematic.


Valuingsecurities and portfolios.

illiquid5

Overcoming these hurdles requires a

robust and

sophisticatedtechnology architecture.



Once in place, your IT framework can enable a variety of key

best practicesincluding…

Value-at-Risk capability


Real-time reporting

Intra-day

and more…

Learn more about Evolving Hedge Fund Risk and howto Create a Best Practices IT Framework.

Download the free white paper from Advent Software.

www.Advent.com/HedgeFundRisk


http://www.advent.com/HedgeFundRisk

http://www.advent.com/HedgeFundRisk

Hedge Funds: Are You Managing All The Risks?

Economy & Finance

Transcript of Hedge Funds: Are You Managing All The Risks?