Management of risk has always been important to investment managers. Beyond protecting assets, adding value is clearly a key objective for any manager and there are no risk-free growth opportunities. The challenge for the industry lies in establishing the method(s) to be used for classifying and quantifying risk. There are several current factors within the industry, however, that make the management of risk more important today than ever.
Failure to manage risks effectively can lead to loss – from loss of business through to loss of personal liberty in the case of some compliance breaches. From this perspective, there is a strong business imperative to implement processes for risk management throughout organisations. Indeed, those organisations that adopt a more holistic approach to risk management have experienced real business benefits in addition to addressing compliance concerns.
Odyssey can provide integration with market-leading solutions for risk management, in order to allow portfolio managers to receive fast and objective measures of risk and to access financial market analytics. The choice of solution to be integrated is client led.
Risk Management >>>
Integration of powerful risk analysis and risk management tools assists investment specialists with the management of risk at Position, Portfolio or Portfolio Group level. The following features are typically available for selection:
- Accurate, current measures of volatility for portfolios and individual securities
- Computation of Value-at-Risk (VaR), portfolio standard deviation, and customised risk measures for easier communication to clients
- Risk Attribution (global risk, equity, bond, current risk)
Portfolio Optimisation >>>
The following functions are typically enabled in order to manage optimal asset allocations for cash flows, liquidity requirements, and tax-aware optimisation:
- Buy/sell recommendations
- Individual risk analysis
- Trend direction & strength
- Performance analysis
- Risk-return ratios