Risk Management Function

The powerful combination of our risk management expertise and technology infrastructure, will be your strategic partner

Main Features

Service description

For this service, SYSTEMIC addresses all risk internal and external management needs of any type of fund, including UCITS and Alternative Funds. To this effect it assigns to each fund one or more of its experienced risk managers which are empowered by using our cloud-based suite of specialized systems and tools.

The service includes one or more of the following:

  1. Elaboration of a meaningful Risk Management Process (RMP)
  2. Risk Monitoring against all risks identified in the RMP
  3. Meaningful risk management actions
  4. Preparation or regulatory reporting (UCITS or AIFMD)
  5. Risk presentation to your important investors
  6. Independent Risk presentation to your board of directors

Why Delegate? Benefits.

By outsourcing all or part of your risk management activity you will derive substantial benefits:

Lower cost
Our training academy follows a systematic approach in training our risk management experts and keeping them up to date  with regulatory and market developments. This allows us to be more productive and to spend more time with our customers. 

Our staff is of course highly proficient in understanding and using all of our systems and modules so they spend less time in understanding the tools, and more time in solving real customer problems.

Most of our staff is based in Athens, Greece which has several competitive advantages for risk management specialists: Strong academic background, talent availability at all levels, competitive cost.

Trained experts - time to train
How long will it take you to build a risk management team, train the people, select quantitative tools, develop the right processes etc? With SYSTEMIC you can have a fully functional team of professionals up and running within a few weeks.

Turnover of key staff, Leave of absence

When budgeting the cost of running an internal risk management unit you need to consider 100% availability. What happens when one or more of you risk experts are absent? How long will it take you to replace an expert who resigned? At SYSTEMIC we guarantee 100% availability without such hidden costs.

Continuous regulatory updating

Being constantly up to date with regulatory developments (UCITS, EMIR, AIFMD, MiFiD, Basel III, Solvency II…) which directly or indirectly affect your fund is a challenging and time consuming task in itself. We employ experts who are dedicated in regulation and who make sure that all issues and opportunities are rightly communicated across our entire organization.

Particularly useful for small to medium-sized funds

Funds of all sizes may derive benefits from outsourcing part or all of their risk management activity. Smaller and medium sized funds however will derive all above benefits to the highest degree. Multi-billion funds may also derive important benefits by outsourcing at least the quantitative, systems, and regulatory parts of risk management.

Risk measurement and management

We do both! Risk measurement consists in quantifying the various types of risk using appropriate modeling techniques, and in presenting the quantification results in a meaningful manner. This is a daunting task in itself, however it is not sufficient to safeguard your fund and investors against potential risks.

Risk management uses quantification techniques, information systems, processes and human judgment in order to manage the risks presented in the most efficient way. It should never be a “tic box approach”. SYSTEMIC’s risk experts are constantly alert, trying to understand the essence of his situation, always feeling unsatisfied with their own models and assumptions, constantly asking themselves: what if… 

Risk presentation to investors

In the modern environment, investors are becoming increasingly sophisticated and risk-averse. Track record, even if it includes an exceptional history of realized returns, is no longer sufficient to convince any institutional or other risk-consious investor: “How much risk did you assume to achieve these returns?” is the question that needs to be answered.

In order to convince such an investor, you need to communicate the breadth and depth of your Risk Management Policy, show that your RMP is effectively monitored, and to prove that your investment and operational activity is strictly compliant to your RMP.

Our risk experts regularly present to important investors and convincingly answer to their questions on all important aspects of a fund’s risk management policy. In addition, they present in a comprehensive manner all risk aspects of a fund’s portfolio including a snapshot and historical evolution of important risk measures such as:

  • Value-at-Risk
  • Risk allocation, comparison to nominal allocation, compliance to investment prospectus 
  • Identification of most relevant risk factors, sensitivity of Net Asset Value to these risk factors
  • Stress test results.
  • Counterparty risk exposure
  • Concentration risk
  • Operational risks management: Risk & Control self assessment (RCSA), Key Risk Indicators (KRI), Action plans
  • Other relevant risks, how these are monitored and managed

In addition, just by hiring a team of dedicated experts in the field of risk management is a powerful message to the market about the importance of this subject within your funds.

Risk presentations to your Senior Managers, Board of Directors

As a member of the Board of Directors of one or more funds, you should be getting accurate and independent information about all risks that are assumed by the funds under your responsibility on a periodic basis. Such information includes compliance aspects, but also a forward-looking risk assessment.

Such information needs to originate from a truly independent team. SYSTEMIC is an independent firm whose remuneration is independent from the performance of the fund. Combined with its accumulated expertise by working with numerous funds, it is ideally placed to provide this type of information.

Our presentations are typically brainstorming sessions where creative thinking is encouraged. All threats are discussed including appropriateness, sustainability, and mitigation. Alternatives are also examined in an effort to optimize the ex ante risk - return balance.