bfinance Operational Risk Solutions (“ORS”) supports investors in assessing asset managers’ operational risk prior to investing or as part of an ongoing monitoring programme.
New operational pressures
Assessing operational risk has never been more important. Prudent investors can’t afford to be complacent about the potential impact that non-investment risks can have on their portfolios. The growth in exposure to alternative investments, particularly private market strategies, an increasingly complex regulatory environment, and the ever-greater threat posed by cyber criminals means investors’ exposure to non-investment risks continues to evolve and therefore requires specialised knowledge to be appropriately evaluated.
Alongside this, we observe that many institutional investors are now subject to prescriptive guidance on the need to conduct thorough assessments of external asset managers’ operational processes and controls. This is a subject that demands ever-increasing attention.
Comprehensive ODD services
bfinance’s ORS function provides full coverage of the asset class spectrum, evaluating managers’ policies, procedures and resources across key control functions (depicted left). Our Operational Due Diligence ("ODD") approach incorporates a deep and granular assessment of non-investment risks, designed to mitigate an investor’s expose to potentially damaging negative outcomes. Analysis is supported by the use of bespoke due diligence questionnaires, while reporting presents the information that is most pertinent to the specific investor.