Fine Risk management
We bring value to your investment process through fine risk management
Definition and consideration of risk profiles
Dynamic comparison of clients' needs with their portfolio allocation requires a specific process and tools to carry out the necessary adjustments in a timely manner.
Fine risk supports you in the formalization of an investment and risk management process and its implementation over time, in the dynamic verification of the suitability of the client's profile and his needs, and in the recommendation of adjustments (including instrument switches and hedging strategies) when neccessary for certain clients or for all managed portfolios.
This detailed and precise description not only satisfies the regulator's requirements, but it also helps to ideally resolve the apparent contradiction between optimizing the portfolio management function and the tailored portfolio that each client desires.
Strictly interpreted, each client is therefore different and should have her / his own unique portfolio. In fact, typically, similar portfolios are often used for multiple clients. However, we insist on the fact that it is then up to the asset manager to prove if and how this standard portfolio sufficiently meets the profile of each client, which is unique and contains many specific elements.
Support for risk management and investment policy
Creation of your risk environment in compliance with the regulations, including the analysis of portfolios and the creation of a personalized management environment.
Quantitative and qualitative risk assessment:
- At the instrument level, appropriateness: synthetic score, integrating market, credit and liquidity risks
- At the portfolio level, suitability check: when establishing the position, and over time as soon as the situation requires it, with recommendations for adjustments
- Benchmarking and study of the impact of changes
- A more complete outsourcing of the function of Chief Risk Officer is also possible, according to your needs
Intuitive representation of risks
It involves an overview of the main sources of risks and a breakdown of the main risk factors:
- Risk mapping / heatmap: their location in the portfolio
- Synthetic indicators
- Risk aggregation according to different criteria
- Correlations and dependencies
- Exposure, concentration, sensitivities
Dynamic performance and risk monitoring
We provide you with the following tools:
- Monitoring price variations
- Recent performance screen
- Performance attribution
- Benchmarking
Documentation of the management process
We provide assistance with the documentary work:
- Filtering of instruments and consideration of exclusion lists or investment limitations specific to each client
- Regular risk monitoring reports
- Instrument documents updates
- Document archiving
- Automated checks and reports
- Traceability of analyzes, investment recommendations and reporting
Liquidity management
The study of past and future cash flows is particularly useful for clients wishing to extract regular income from their portfolio or with liquidity needs at specific dates.
Likewise and for the same reasons, liquidity measures are necessary: cost and time to exit a position (in normal times and in the event of "stress").
Simulations, scenarios, stress tests
We help you study and document the impact of risk scenarios, specific or macro based.
Risk overlay and hedging
Our objective is to help you define the necessary adaptations of your portfolios to improve control of the risks incurred. This involves defining a "Risk Overlay" program, with adequate hedging instruments and structuring the desired market exposure profile via derivatives, structured products or options.
Specific instruments, alternative funds and direct deals