Investment Risk

All but the simplest investments expose investors to multiple financial risks that can result from a range of events and scenarios. Risk can involve the collapse of a specific company, industry sector or currency. Equally, it can stem from shocks to the market as a whole, a dearth of interbank liquidity or the failure of a trading counterparty. The key to good investing has always been to know and understand the complete set of risks that a portfolio faces and manage them in line with your risk profile.

Today, however, demands on investment risk management are growing. On the one hand, traditional asset managers are investing in a greater variety of sometimes riskier asset classes as a means to improve returns. On the other, hedge funds and alternative asset managers are seeking to attract institutional investment. In both cases, there is a greater burden on firms to improve control, reporting and transparency – and as a result, many organizations must now incorporate risk even more fully into their investment strategy. This typically means taking a more integrated approach to risk management through the front and middle office as well as carrying out more regular and detailed reporting to satisfy regulators, investors and key stakeholders.

Create competitive advantage through integrated risk management

SunGard’s APT solution meets the buy side’s growing demands for integrated risk management and timely risk reporting, helping firms improve risk management consistently across multiple asset classes, from commodities, derivatives, equities, fixed income and foreign exchange to unlisted assets such as infrastructure, private equity and real estate.

APT’s investment risk management solutions help buy-side firms to:

  • Achieve compliance by generating the regular reports that regulators now demand
  • Meet the increased requirements for reporting and transparency of today’s sophisticated investors, who seek a greater understanding of risk as part of portfolio strategy
  • Achieve a comprehensive, enterprise-wide view of risk across asset classes for improved investment decisions
  • Increase operational efficiency with fully automated risk reporting that is available as a fully managed service

Find out more about APT for integrated investment risk management and how it can help you enhance investment strategy, improve investment decision-making and deliver fully automated risk reporting.

Our Expertise

Laurence Wormald

FIS's asset management business
Scenario analysis of Brexit indicates asset managers must pay close attention to the significant risks associated with the referendum, and should consider a variety of diversification and hedging strategies if their mandates permit them.

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