Risk management, valuation and transparency

Tue Jan 22, 2008



Liquidity risk, stress testing and arrangements with prime brokers are now more important than ever Neil Wilson This leads neatly on to the next section where we want to focus on risk management valuation transparency. Especially during periods of stress, investors really want to know what’s going on in their funds. What is the current state of the art in this area?

Clare Flynn Levy I don’t know if it’s changed as a result of last summer, but from what I’ve observed risk reporting has come a very long way in recent years. State-of-the-art risk controls are not only about portfolio risk, although real-time stress-testing and scenario-testing of the portfolio is extremely important. But the events of the summer certainly called to attention the management of various forms of liquidity risk. Tisbury has three prime brokers – in part, this was done in the interest of diversification, but in part because...

ISSN: 2151-1845 / CDC10004H

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