News & events

European Risk Management Conference - Highlights and photos

The ALFI&ALRiM European Risk Management conference took place on May 19 2015, and was attended by more than 240 delegates.

Panel - Risk Management for alternative strategies - What about the practice

Panel - Risk Management for alternative strategies - What about the practice

In their introductory speech to the conference, Camille Thommes (Director General, ALFI) and Marco Zwick (President, ALRiM) highlighted the strong evolution of the AuM in the investment fund industry in Luxembourg and insisted on the reinforcement of the Risk Manager’s role in this rapidly evolving environment.

During the day, different topics have been addressed with amongst others:

Operational risk;

  • Key learnings of the implementation of the AIFMD risk management principles;
  • Current state of the financial and potential triggers of the next financial crisis;
  • The relationship between the portfolio management activities and the risk management.

From these different sessions, we can retain some key messages which will probably complete the roadmap of the Risk Managers for the coming years:

  • Regarding Operational risk within the investment fund industry, panellists insisted on the fact that while most of the market, credit and liquidity risk factors are now usually properly monitored, the risks related to the distribution needs increased attention and more systematic monitoring.
  • If Risk Management is viewed as adding value to the business, the past experience and industry expertise of Risk Managers appeared as a key points to consider.
  • Looking for a Risk Manager who masters all investment strategies pursued by AIFs (i.e. Hedge Funds, Real Estate and Private Equity) sounds as an unrealistic challenge. It is then probably recommended to look for a team of Risk Managers, specialized per asset class or share that activity with other experts.
  • The relationship between the Portfolio Manager and the Risk Manager, the transparency requirements and the liability of the Risk Managers are all increasing and should not be underestimated.

The conference ended-up with the feedback from representatives of both the Luxembourg and the German Regulator on some technical topics as well as the next steps in the development of the regulatory environment.

Overall, the 6th ALFI/ALRiM Risk Management Conference highlighted clearly that risk management is a key component of the governance framework of asset managers and as such also of paramount importance for senior management as well as for Board of Directors of Management Companies.

More photos of the conference can be viewed here.