Can risk management yield strategic benefits?
In the financial services industry, it’s easy to see risk management as something of a burden. Sure, its an imperative, but the sense is that it is mainly something necessary to satisfy regulators and shareholders in the wake of a stunning credit crisis. Clearly you need a near-real-time grasp of your portfolio exposures. And there are many vendors that will tell you how to do it. But all this new functionality may have benefits beyond merely satisfying regulators. Wall Street & Technology notes that the data can easily be used to satisfy core customers, who need reassurance about their funds. In fact, at hedge funds, heightened reporting to customers about portfolio parameters as well as fees is becoming a reality. Investors are demanding as much. One would think that risk management data could be cross-purposed for that. We’ll likely see more vendors tout their communications aspects as well. So like forward-looking Sarbanes-Oxley compliance applications, there seem to be strategic b
