Risk Management: Governance, Culture and Technology

In the introductory paper, Risk Management: The Intelligent Pursuit of Risk, it provided a glimpse of the qualifying framework of striking the right balance of specific risk exposures—with the goal of increasing returns. It was used to ask (1) Are risk factors consistent with the fund or strategy’s mandate? (2) Is their presence intentional? (3) Do they represent excessive exposures? These questions provide a clear basis for measuring risk, which is a result of the assertive role that risk management plays throughout the entire investment management cycle. The risk management’s process also draws on three key strengths: governance, culture and technology.