The expansion of investment and trading into global strategies, new products and electronically traded markets has tasked risk managers to enhance their risk monitoring capabilities. End-of-day risk management is no longer sufficient. Furthermore, increasing market volatility due to political instability, financial markets turmoil and climate events, as well as other frictions, supports the need to go beyond the usual risk statistics and introduce multifactor stress tests to prepare for future events.
MethodologyFrom April through May 2024, Coalition Greenwich interviewed 46 risk professionals in the U.S., U.K., and continental Europe. These participants manage exposure to multiple asset classes at asset management firms, hedge funds, banks, and brokerdealers. This study was developed to better understand trends in risk management practices given today’s risks.
