Analytical Insights - Q4 2015

Analytical Insights is a quarterly publication providing clients with investment information that can be used in the process of monitoring global assets.

A Message from Debra Baker

Managing Director, Head of Global Risk Solutions
BNY Mellon

With an increased focus on risk by regulators and other stakeholders, many institutional investors require a more comprehensive understanding of how risk operates across all investments within an entire investment program. As a result, enterprise risk analysis such as stress testing and scenario analysis are increasingly popular with institutional investors. The issue that many of our clients are facing is how to incorporate alternative investments (hedge funds, private equity, real estate) into this type of risk analysis.

In response to this issue, I am excited to share with you our new, practical application paper, Considering the Alternatives: A Practical Look at Enterprise Risk Analysis and Alternative Investments.

The paper examines the following questions and challenges associated with this risk management practice.

  • How are institutional investors addressing the challenges of incorporating illiquid or non-transparent investments into enterprise risk analysis?
  • How do different approaches to data management affect risk analysis?
  • What are the benefits and risks of different approaches to this challenge?

To read the paper, please click here.

If you have any questions about this paper or would like to discuss how our enterprise risk analysis can be incorporated into your investment process, please contact your Global Risk Solutions Consultant.

Best regards,

Debra A Baker's Signature
Debra A. Baker