Know the Risk, Measure the Reward - BISAM at PMAR North America

Posted by Erika Alter, Global Head of Commercial Strategy, BISAM on May 24, 2016 9:42:35 AM
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It was a pleasure to participate in last week's Annual PMAR Americas conference - held May 17 – 18 in Philadelphia - where we had the benefit of hobnobbing with seasoned industry practitioners and thought leaders.

Some of BISAM's own thought leaders took the stage at PMAR: Sean Murray, veteran PMAR participant and BISAM’s Director of Product Strategy, was joined by Dr. Boryana Racheva-Iotova, BISAM’s Global Head of Risk and co-founder of the FinAnalytica market risk platform – now part of BISAM’s suite of best-in-class portfolio analytics. The two led a forward-looking presentation about the unification of market risk and performance measurement – discussing how the industry can capitalize on the strength of the individual functions to deliver a powerful new approach to investment decision-making within their organizations.

After PMAR came to a close, I caught up with Sean, Boryana and the rest of the BISAM team in attendance - all of whom have been actively engaged with the industry - to understand what practitioners define as the most valuable aspect of unifying market risk and performance measurement practices, functions and tools. Following are snapshots of the current buzz.


Sean Murray

"Everyone is looking for the perfect solution: slick ex-ante risk functions applied to performance & attribution results. That said,  data quality is still paramount to meaningful results, even more so when you transition from estimated risk results to official. The perfect solution or set of solutions will take all of this into account."

Boryana Racheva-Iotova

"The need for robust risk analytics are more essential than ever when it comes to understanding and driving performance of investment portfolios."

Nina Sharpe

"In general, performance and attribution has been considered a back or middle office function, and one exciting aspect of bringing risk into the equation is the growing movement of P&A analysis teams into the front office - or at least a far stronger collaboration between the front and middle offices - as performance and risk unification is used more extensively for portfolio management and construction decisions. This movement is exciting because it means more visibility for what is often considered a niche function."

Eric Lapham

"The Barclays POINT acquisition by Bloomberg has created a lot of buzz amongst firms looking for alternative solutions.  While some large asset managers are choosing to go the “best in breed” route and select a vendor for P&A and another vendor for Risk, many are seeking just one vendor. BISAM's B-One, alongside FinAnalytica's  Risk platform - now part of BISAM's suite of best-in-class portfolio analytics - fits nicely under either scenario."

Justin Negrotti

"Folks are generally excited about the prospect of the unification of performance and risk, and are looking for guidance from experts in the space as to how this unification should be achieved. "

There is clearly a growing buy-side demand for a more unified view of performance and risk in support of more differentiated investment strategies. Both Cognity and B-One, each award-winning in their respective domains, offer both performance and risk analytics today – and there are immediate benefits that users can realize now from BISAM’s unified suite of solutions, including integrated factor-based risk and performance attribution, and the ability to pass data from Cognity - on both tail risk and sensitivities - into B-One. This enables users to take advantage of the patented, advanced risk analytics from the Cognity platform.

What do you think? Take our market survey to add your input to BISAM’s risk + performance strategy:


Topics: Performance & Attribution, Risk Management

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