Buy-side firms face a convergence of pressures: a dynamic, fragmented and competitive sector, the search for returns in a macro environment beset by low interest rates, and increased attention from regulators. Increasingly, buy-side firms view risk management technology as a strategic capability that enhances their investment decisions and makes them stronger and more competitive.
After an overview of the current marketplace and the key trends identified in the 2015 Chartis Key Trends in Buy-Side Risk Management survey, this market report focuses on the following areas:
- The solutions landscape: Strategies for choosing a technology vendor, taking an enterprise-wide risk approach and the increasing adoption of electronic trading platforms.
- Best practice: Establishing a firm-wide risk strategy and recognising the importance of speed and nimbleness.
- Risk categories and risk factors: A survey of the risks faced by the buy side in fixed income and through over-the-counter structural changes, and new threats such as market risk and liquidity risk.
- IT expenditure: An illustration of the distribution of buy-side firms’ spend on risk management solutions.