Our risk management capabilities are based not only upon a deep understanding of portfolio management activities, but also comprise all aspects of enterprise risk management.
Our main partner, Arkus Financial Services, will use tested and proven tools to deploy sound risk management framework that can be broken down in four steps:
This methodology can be applied to Market Risk Monitoring as well as to Operational Risk Management. Not need to say that this process need to be completed by a sound governance process.
1- The Market Risk Monitoring
Arkus will take care of the entire data process (establishing links with the administrators and external data suppliers), the quality check of the source data, the resulting risk metrics and the final reports.
We will ensure highest quality of the numbers provided by solid risk models which have been validated according to ESMA 10-788 standards. We rely upon our internal IT team, robust technology and tested processes.
2- Operational Risk Management
While the exercise may appear has being tedious, it offers the occasion to assess risk in a different way. It is the opportunity to conduct a constructive review of structures which were in some cases established several years earlier, to assess efficiently contemplated investments in assets such as Private Equity firms, Real Estate or Infrastructure. To this end, Arkus developed methodologies to assess, quantify and analyze the various risks to which a company may be exposed.
MAKing THE NUMBERs TALK
Our systematic approach to Risk Management
Our company provides asset managers with flexible and independent risk management solutions.
Arkus is mainly focused on two core activities; the provision of risk measures/reports and the qualitative assessment of investment risk and risk management processes on the other side. This includes consulting missions and the delegation of permanent risk management functions to Arkus.
On a daily basis, our pool of experts produce 450 reports, deliver consulting missions and ensure the permanent risk management functions for UCITS/AIFs.
Arkus is a combination of our expertise in risk management and what we have learnt from our clients over the past 14 years.
Since our creation in 2003, we believe that best practices should inspire new regulation and not the other way around.
SET UP Ability to adapt context
- Based on key risks identified, regular monitoring of KRIs and escalation in case of signals.
- Assist to compile, or prepare regular board reporting on risk; alert summaries etc.
AIF’S/UCITS Risk Profiling
- Identification and formalization of all risks inherent to an AIF’s/UCITS specific strategy by creating a risk hierarchy
- Consistency of investment process
AIFM/UCITS RMP Review/ Drafting
- Draft/review of existing Risk Management Policy (RMP)
- This includes documenting governance, key risks and KRIs, limits , monitoring and reporting
- Provide tailored risk monitoring reports
- Prepare CSSF regulatory risk reporting compliant with AIFMD/AIFMR Annex 4 reporting template
INTERACTIVE THOROUGH PROCESS
Why do things the hard way ?