The changing regulatory environment has put fund managers under increasingly powerful scrutiny. That has put more pressure on management and compliance teams to find a way to increase transparency yet control risk. Both are important for firms, their clients, investors, regulators and trading partners. Though increased regulatory demands might worry some fund managers, regulatory data can provide an opportunity to gain insight into how the business runs. That, in turn, allows managers to make more educated decisions. But this data and insight are only available when mangers have the right operational and IT platform in place. These solutions must be designed to help the fund manager meet its requirements, while reducing the amount of risk that the firm faces.
For fund managers, asking the right questions is the first step toward mitigating risk and fairly assessing their operational and IT platform. The five questions below can help identify areas of risk that are frequently encountered by those who work in or around investment operations.