In his year-end Q&A, BI-SAM's CEO, William Haney posited that with spikes in volatility in global markets appearing to be the "new normal," risk will become an ever-increasing "ask" alongside performance analytics.
Conversations over the last year with our clients, partners and key thought leaders across the portfolio analytics space have identified a consistent set of industry drivers for a more integrated approach to calculating Performance, Attribution and Risk:
- Risk analytics are essential for understanding and driving performance of investment mandates and execution strategy, not only within the portfolio level, but increasingly at the enterprise level or other aggregate.
- Investors are demanding a better, deeper understanding of the performance and risk profiles of investment opportunities. See Peter Ellis's October blog post, The Investment Risk Knowledge Gap.
- Efficiency is key: an integrated approach to risk and performance delivers higher value and higher quality output and input.
What do you think? Do you agree with the above-outlined key drivers? Are you seeing similar trends? How do you collaborate with the Risk function in your organization?
In the coming weeks, we will collaborate with industry thought leaders to further explore the role of risk within the realm of portfolio analytics, and share those insights here with the BI-SAM community. Conversely, we encourage you to share your points of view via the comment box below.
Happy 2016! As always we encourage our readers and their peers to join the conversation at http://blog.bi-sam.com.