New York, NY – February 25, 2011 – RiskONE announced today that it is providing enterprise-level portfolio risk management technology, personnel and advisory services to meet proposed SEC reporting requirements for hedge fund managers. RiskONE is offering these services in conjunction with Risk Resources, an industry leading risk management advisor and reporting solution.
RiskONE comprehensively addresses issues raised by the SEC n its proposed Rule 204(b)-1 under the Investment Advisers Act which requires investment advisers to report systemic risk information to the SEC on Form PF. Under proposed SEC Rule 204(b)-1, large fund managers with more than $1 billion in assets under management will have heightened annual reporting obligations including exposures by asset class, geographical concentration, and turnover. In addition, for each managed fund having a net asset value of at least $500 million, advisors will be obligated to report certain information relating to that fund’s investments, leverage, risk profile, and liquidity. Fund managers would also have to file quarterly reports on risk profiles. “We believe our solution is at the forefront of future reporting requirements and will help to provide the additional transparency that both investors and regulators are demanding” said Dan Connell, President of RiskONE
RiskONE offers a fully customizable solution to risk management reporting and implementation. Through the use of its proprietary technology and know-how, along with its 100 plus man years of providing risk solutions, RiskONE offers fund managers the industry’s most advanced risk management technologies and in-depth risk advisory practices. Relying on practical and deep-rooted experience, RiskONE uses a diagnostic approach to assist the client in determining the form and function of risk analytics and reporting. Proposed rule 204(b)-1 creates a set of reporting requirements that will undoubtedly require fund advisors to implement and development comprehensive risk frameworks, and RiskONE is uniquely suited to assist managers in accomplishing this.
“We have successfully partnered with Risk Resources to offer our clients the industry’s most robust enterprise risk management and reporting solutions. RiskONE’s capabilities address precisely the issues that the SEC is raising in its Rule 204(b)-1,” said Michael Rosen, CEO of RiskONE. “The combination of RiskONE technology and Risk Resources advisory capabilitieswill provide portfolio managers with comprehensive and customized solutions that will meet all their risk management requirements.”
RiskONE enables managers to properly mitigate both counterparty and operational risk by maintaining an aggregated view of risk and P&L across multiple custodial accounts and facilitates full transparency. The platform allows fund managers to prime and trade with any broker they choose, and can provide a full range of fund administration services as well. RiskONE takes a diagnostic approach to the assessment of the current portfolio composition as well as the fund’s overall business objectives and constraints. RiskONE reports on the content with a robust analytics engine and full customized set of risk reports on a daily, monthly and annual basis.
At the core of the offering is the measurement and evaluation of risk adjusted performance, time series analysis, exposure levels, and profit and loss attribution. RiskONE assists in the determination of the appropriate exposure levels across time, performance and market conditions. We can articulate the organizational risk strategy and implement the necessary changes needed for enforcement. RiskONE further assists in the oversight of portfolio managers and evaluating them against their goals and benchmarks. RiskONE also offers standard predictive risk measurement in the form of Value at Risk, Stress-testing, pre-trade analysis, and other proprietary measures.
For more information on SEC Rule 402(b)-1 see the following links:
SEC Proposes Private Fund Systemic Risk Reporting Rule
Harvard Law School Forum on Corporate Governance and Financial Regulation