Specialist Management Consultancy Aerice Flags Up Portfolio Risk Challenges

22 February 2012

Aerice Flags Up Portfolio Risk Challenges for Pension Fund Managers.

 

Aerice's Global Head of Risk & Compliance, Daniel Geoghegan, has flagged up some key issues facing a number of pension fund managers, with regard to risk management strategies - including the importance of focusing on risk concentrations at portfolio level, and implementing measures to capitalise on risk return beta. 

Commenting at a recent Aerice round table briefing, Daniel explained:

"In these challenging economic times, pension fund managers are under increasing pressure to diversify their portfolios in order to deliver return on assets (RoA).  This can involve raising the stakes in terms of risk exposure, particularly for long-term investment strategies. Pension fund managers are required to  constantly consider the macro risk framework, in order to form the basis of the leverage ratio's and where to de-risk in the trading environment as much as possible, while still capitalising on a potential market upturn.   Being able to understand, evidence and clearly articulate the impact risk has on portfolio behaviour is key here through robust systems reporting.  Through the use of strategic platforms and more accurate and timely reporting as part of a risk framework fund managers can have a greater understanding of the portfolio's behaviour and thus positively impact  its Net Asset Value (NAV) in order to maximise RoA.  This relies in turn on adopting best-practice risk management - across the key risk pillars of portfolio, people, process and systems.  Integration across these areas is key as it helps to provide timely and more accurate information from the risk framework."

Daniel Geoghegan recently joined Aerice to expand the consultancy's risk and compliance-based service range, complementing its existing business and IT transformation offerings.  Daniel has over 13 years' dedicated risk management experience, with his career including posts at Deutsche Bank, where he worked as Global Head of Market Risk Operations, and also in the Risk Chief Operating Office.  Aerice's risk and compliance track record includes projects for a number of leading organisations, including Barclays Bank, Brown Brothers Harriman and Deutsche Bank.

About Aerice

Based in the UK and USA, Aerice is a specialist management consultancy, with a strong track record in the financial services sector for delivering complex business and IT change programmes.  Recent successful implementations span investment management and banking, as well as retail banking, covering operations, client service, front to back office, and fund accounting, plus global risk management and compliance.  Aerice also has extensive expertise in the public and regulated sectors.

Founded by directors Stuart Owers and Dev Sharma in 2009, the company's business ethic is underpinned by combining tangible project delivery with developing long-term relationships, working with absolute integrity from start to finish.  Key to Aerice's consultancy approach is the agreement of an exit strategy at the outset, establishing agreed deliverables and ensuring long-term sustainability via an enduring project legacy.  The company's services span Advisory, Business Process Transformation, Customer Management, IT strategy and Transformation, Outsourcing, People, PPM, Risk Management & Compliance, Sales & Marketing, and Strategy.  www.aerice.com

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