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From Sagar Chakraverty, Opalesque Asia:

In this era of globalization, is risk management more challenging? This could be an inconvenient truth.

Information flow is much faster now and that could cause some odd events in one part of the world to immediately impact upon the prices and volumes in other parts of the world. Investors’ sentiments still being shaky, they want managers not to lower their guards through better operational risk management such as multi-prime brokerage, usage of advanced technology, simulation of worst-case scenario events, less leverage, and measuring risk quantitatively.

Managers are now trying to bring about tangible changes in risk management approach as investors push for more transparency and risk-averseness. “There are a lot more questions about risk-taking and internal controls. Some asset managers have hired chief risk officers or, if they had one already, increased the size of the risk management team…In the aftermath of financial scandals and turmoil, risk is a four-letter word in every sense. We are all risk managers now,” said Susan Mangiero, the CEO and founder of Connecticut-based Investment Governance Inc. Her comments appeared in this month’s edition of “Perspectives,” an opinion paper produced by RBC Dexia Investor Services, a joint-venture between the Royal Bank of Ca......................

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