Alternative Investment Management Association (AIMA) has released its first guide on operational risk management for asset management firms.
The AIMA Guide to Sound Practices for Operational Risk Management focuses on a wide variety of risks that could result in loss from inadequate or failed internal processes, people and systems or from external events.
The new guide, which is available to AIMA member firms, includes advice on areas such as trading, execution and market manipulation risk, post-trading risk, regulatory, and compliance risk, as well as technology, cyber security and outsourcing risks.
Jack Inglis, AIMA CEO, said: “Operational risk is an increasing focus of investors and regulators alike. Both of these groups will expect managers to have sound operational risk frameworks and will also be expecting next generation managers to be progressing along the spectrum of increasingly sophisticated approaches as they grow.”
Daniel Johnson, head of Wells Fargo Global Fund Services for Europe, which sponsored the report, said: “In today’s environment of increased regulatory and public scrutiny, it is imperative for small- to mid-sized alternative investment firms to stay abreast of best practices to enhance their operational risk management processes and procedures.”
“This guide provides a basis from which managers can learn and adapt their operations to suit their ever-changing needs.”
