KRM22,which I lead, was set up to help reduce the cost and complexity of the risk management in capital markets with vision to allow firms to operate effectively at their optimum level of risk – what we call “Risk as Alpha”.
The Capital Markets are well used to assessing risk but were blind sided by the sudden and dramatic impact of COVID-19. It is worth noting that it was not all downside and in fact many were lucky and benefited from the high volatility and hence volumes of trades. Getting lucky is not a strategy and although positive for many, a reassessment of risk appetite, risk controls and in particular the broad church of enterprise risk is needed. The reassessment should include howto ‘join the dots’ and to look at how to identify the early signs of a crisis,to allow time for mitigation actions. This is as well as the macro consequences of a crisis on the going businesses. These reassessments need to be not only on one’s own business, but also those businesses in which funds are investing and those the business is dependent on.
KRM22’s Global Risk Platform provides applications to help you address your firm’s regulatory, market, technology and operations risk challenges and to manage your entire enterprise risk profile. KRM22 is a public Group listed on AIM and headquartered in London, with offices in several of the world’s major financial centers.