Fund managers switch focus to risk transparency

Daily news headlines

LONDON - Hedge funds and asset managers are increasingly prioritising transparency to address the lack of investor confidence in their risk management standards, according to a study by risk software provider Sophis.

Sophis says a collapse in investor confidence over risk management within the sector is causing a cultural shift, with 67% of asset managers planning to embrace transparency by increasing investor reporting.

Hedge fund and asset management - dubbed 'shadow banking' during the crisis - has historically been associated with a lack of transparency by secretive fund managers, and has faced investor and regulatory pressure over poor risk management and heavy losses in the current volatile market. Sophis says 63% of fund managers believe their risk management requirements have been changed by the crisis.

Furthermore, 73% of respondents said an integrated view of risk was necessary, including for the use of derivatives. The survey confirms industry moves toward an enterprise-wide view of risk management to embrace operational, counterparty, market and liquidity risks.

Sophis itself has expanded its operational risk and regulatory compliance emphasis for its own trading and risk management platform targeted at the capital markets and asset management industry.

  • LinkedIn  
  • Save this article
  • Print this page  

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: