When it comes to the risk management of investment assets,
either individually or on a portfolio scale, there are a number of
choices to be made relative to the investment appetite of the firm
and the risk profile of the underlying exposures. In light of the
continually increasing regulatory requirements on both financial
and peripheral industries, risk management practices and their
evolution are firmly on the radar of senior management, board
members, auditors and other stakeholders.
Implications to capital and risk management continue to evolve
and at times converge under MiFID II, Solvency II, CRR/CRD-IV,
PruVal and Basel III, but there is undoubtedly a greater focus on
more granular risk management reporting, and the quality of the
underlying analytics and models used to create the metrics.
