Risk governance review

Are current risk governance structures fit for purpose, given recent geo-political events?

There has been a lot of discussion on what the Ukrainian crisis means for the world’s markets over the last two months. But there has been much less of a focus on what recent events might mean for the fund industry’s risk management structures – and whether they are what is required for the world that we might well be moving into.

Risk management is dealt with very differently on each side of the Atlantic. In the US it is part of the responsibility of the team that makes the fund’s portfolio management decisions. That was how it used to be done in Europe too. And to this day portfolio managers are of course still heavily involved in the risk calculations of their investment decisions.

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