Risk systems take a back seat

Despite uncertain and volatile markets, Asia’s asset managers have yet to embrace third-party risk systems for the front office, relying instead on internally developed processes and systems. Lachlan Colquhoun reports.

Asset managers are under unprecedented pressure. Corporate disasters such as Enron and WorldCom have boosted market volatility to levels many managers have not seen before. Meanwhile the increasingly cut-throat competition is forcing managers to slice margins in the pursuit of mandates.

This should add up to a lucrative new opportunity for risk management software vendors, but – at a front-office level – few of the big global players seem to be making inroads in Asia-Pacific. While