Riskmanagementforalternativeinvestmentfunds-DeloitteUS.pdfVIP

Risk management for alternative investment funds Deloitte: Your partner of choice Converging regulatory and market trends call for enhanced risk management Following the 2008 financial crisis, regulators across of persisting low or negative interest rates. In that the globe have increased their focus on the alternative context, risk management considerations are of crucial investment fund industry, an industry which until importance and play an important role during due recently was less regulated. diligence processes. This has triggered the introduction of measures such All stakeholders across the value chain, thus, have to as the Alternative Investment Fund Managers Directive adapt to this new environment and either dedicate (AIFMD) and other strong requirements pertaining to internal resources or seek an external provider to assist governance and risk management. with their risk management needs. In particular, risk management is one of the two Past philosophies and processes might no longer core functions of investment management under comply with current requirements. In this context, AIFMD, with the Directive stringently regulating risk the way professionals look at these issues has governance in Alternative Investment Fund Managers to be rethought. (AIFM) and how risk management processes are designed and operated. Further, the increased demand from regulators for additional reporting and greater transparency in Deloitte Luxembourg disclosing the risk profile of Alte