Risk preparation for fund boards

Risk preparation for fund boards

If we are moving into a more turbulent era what else, if anything, should fund boards be doing to prepare for what might lie ahead? Given that every fund is different it follows that the risks that they face are not the same either.

But they all have some sort of risk. And following many conversations that The NED has had recently with fund directors – as it conducted its Risk Survey (see page 11) – it does not appear that everyone is prepared for what might be just around the corner. As well as a market downturn funds, and their investors, face the possibility of nasty surprises on both geopolitical and macro-economic fronts.

As The NED has covered before, those whose job is to do the fund’s portfolio or risk management are not employed to look around corners and explore what might be lying in wait from unforeseen geopolitical events.

To read more on this story, see the May issue of The NED.