RiskTech Forum

Buy-Side Risk Management Technology - Special Market Report

Posted: 14 February 2017  |  Source: Chartis

Asset managers play an increasingly pivotal role in the financial system. They have assets under management (AUM) equal to 75% of global banking balance sheets, which makes them, in many ways, as systemically important as the banks.

Buy-side firms are continuing to face a rapidly changing operating environment in which key drivers and principles are contradictory and conflicting:

These drivers have a profound effect on risk management and its technology, which require:

Several drivers of buy-side risk management have been identified – regulation, market structure changes and investor behaviour shifts. There has been little change in direction, and there have been increases in velocity and acceleration with some bumps along the way – but firms are still on the journey. What is clearer now is that the buy-side risk tools, while converging with the sell-side tools, will always remain somewhat different due to the exigencies of each group’s legacies, its inventory management, investor reporting, history of outsourcing and relative lack of skilled resources.

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