Firms on the buy side are under tremendous pressure to raise the bar on their risk management capabilities — driven by factors such as changing investor priorities, sophisticated investment strategies, and global regulatory pressures. In the midst of regulatory scrutiny and heightened client expectations, firms will need to develop new capabilities to implement investment strategies that are more diversified, defensive, and “risk-transparent.”
At the same time, firms must carefully navigate the uncertainties and overheads around the nascent swaps trading and clearing ecosystem. It will remain critical for investment firms to adopt efficient operating models in order to demonstrate value-added “alpha,” and be operationally lean to mitigate the potential impact on risk-adjusted returns.
In this webinar with FINCAD, Research Director Cubillas Ding examines structural drivers which continue to shape the buy side business agenda:
- Changing investor priorities and multi-asset class investing require increased sophistication through a spectrum of investment strategies.
- Alternative assets are a focus in the thrust toward diversification and resilience.
- Adoption of risk factor-based investment approaches continues to rise.
- Market structure regulations are creating a web of uncertainty, creating operational complexities and raising barriers to entry.
- Imperatives to drive efficiency and manage costs.
Audio for this presentation is available here.
