Fri, Oct 31, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Risk management (2) - regulation imposes requirements regardless of cost and benefit

Wednesday, February 13, 2013

amb
Ed Gouldstone
Benedicte Gravrand, Opalesque Geneva:

In this two-part article, experts in risk management practice or solution discuss the current status quo of risk management within the hedge fund industry. (Part 1 is here.)

In this article, we examine the implications of the ongoing regulatory demands, real time data as a risk management solution, operational risk, and whether more risk management demands will stifle the hedge fund industry or on the contrary, create opportunities.

Regulatory concerns and costs

Giuseppe Ballocchi, a Geneva-based financier and an expert in risk management practice, believes that in light of the regulatory developments, more time and money will be spent on risk management.

"Headcounts have, to my knowledge, gone up dramatically in the last five, six, seven years in terms of risk control and also compliance," he said. "There will be more and more expenditure, and all of that is not necessarily good, because in the end it creates cost. As for every activity, there needs to be a cost benefit analysis, but regulation seems to be imposing requirements regardless of cost and benefit."

Service providers are seeing a growth in the number of clients asking for tools and services for risk and compliance, Ed Gouldston......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Macks aim to raise $750m for real estate debt fund[more]

    From Therealdeal.com: Father-son duo William and Richard Mack and former Blackstone Group managing director Peter Sotoloff are starting a new real estate debt fund. Together, the trio hopes to raise more than $750 million for the private equity fund, according to the Wall Street Journal. The fund wi

  2. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  3. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  4. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  5. Manager Profile - Seth Klarman: Lessons for retail and institutional investors[more]

    From Valuewalk.com: Seth Klarman is virtually unknown outside value circles, despite his impressive record and value of assets under management. On average Baupost has returned 19% p.a. despite holding a large portion of its assets in cash. During the financial crisis, Seth Klarman’s funds lost some