Mon, Dec 22, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

How family offices could establish solid risk management

Thursday, June 27, 2013

amb
Kristoffer Houlihan
From Komfie Manalo, Opalesque Asia:

Family offices should seek to establish a solid risk management infrastructure when considering how to best handle investment risk, advised Kristoffer Houlihan, founder and Managing Partner Armilla Partners, an independent strategy and risk advisory company.

"Lack of effective risk management has led to significant declines in family offices. Only a few managed to utilize adequate risk controls in order to mitigate financial losses," Houlihan said in an interview with Opalesque. He added, "Without much liquidity, it was much more difficult to bounce back during early years of recovery. In times of less certainty and greater volatility, family offices can employ proper risk management and well-coordinated advisory processes to best preserve assets. Also, by looking at the investment world today, there are still many risk management flaws in even the most sophisticated investment institutions from which family offices can learn, exemplified by the bankruptcy of MF Global and the $6bn in losses at JP Morgan."

According to him, a comprehensive risk management structure should have the following: strong risk metrics, frequent monitoring, exceptionally formalized risk management and well operating risk governance procedures. He said the structure should be able to prevent even the simplest areas of risk, such as improper authorization of investment executions or insufficient techn......................

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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. North America - Why Steve Cohen, Connecticut hedge fund billionaire, gives so much in New York[more]

    From Insidephilantrophy.com: Billionaire Steve Cohen was born in Great Neck, New York before attending Wharton, working on Wall Street and then founding SAC Capital Advisors in Connecticut. Though his company (Point72) and foundation are based in Connecticut, Cohen and Alexandra are deeply connected

  5. Investing - Soros buys a highly speculative biotech in the third quarter[more]

    From Fool.com: …The Soros Fund bought 25,000 shares of the struggling small-cap biopharma Aegerion Pharmaceuticals in the third quarter. For those of you who haven't heard of this name, suffice to say that this was a surprising buy in light of the company's recent problems and poor outlook going for