Wed, May 4, 2016
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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n