Intra-day Risk Management Presents a Challenge to Both Buy-side and Sell-side
VANCOUVER, British Columbia and DUBLIN, May 17, 2012 /PRNewswire via COMTEX/ –
FINCAD released today the results of its third annual finance survey, which demonstrated that intra-day risk management is an important requirement for both the sell-side and buy-side. FINCAD’s survey uncovered that 61% of sell-side respondents require risk information on-demand or intra-day, while almost half (46%) reported the same requirement on the buy-side.
Traditionally, running scenarios requires significant bandwidth and time to obtain results. However, more financial professionals are requiring risk information to be available at the pre-trade stage or throughout the day, so they can better respond to changes in the market and adjust their portfolio accordingly. So it was not surprising, when asked about their biggest challenge, that accurate risk assessment topped the list for both buy-side (27%) and sell-side respondents (22%).
“While risk measurement has always been important, it has traditionally been viewed as a cost center. However with the aftermath of the financial crisis and regulations requiring tighter capital requirements and increased collateralization, we’re seeing a significant shift in the importance placed on risk management as a necessity and a competitive advantage,” said Bob Park, President CEO, FINCAD. “Financial professionals, now more than ever need on-demand-risk and are turning to risk
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