Operational risk accounts for half of all hedge fund failures and operational processes and back office capability face increasing scrutiny by potential investors. Our consultants have first hand experience of the dramatic impact of systems and processes on portfolio management and operations - both good and bad. Timely and accurate data management and reporting; feedback loops between trading, portfolio management, operations, and administration; timely reconciliation; and aggressive problem resolution all act in concert to mitigate or eliminate operational risk. Thorough analysis of the efficiency, effectiveness, capacity, and internal controls and operations processes of a hedge fund is also critical to supporting due diligence inquiries.
  • Trade processing risk
  • Risk associated with incorrect or lack of timely accounting, administration, reconciliation and valuation
  • Cash management, collateral management, and margin maintenance failure
  • Lack of automation, system limitations, lack of timely data, and failure to properly integrate information
phone: 407.340.1239 fax: 407.843.3778 e-mail: info@hedgeops.com