PI offers an effective means of managing risk because it uses advanced analytics methods that apply forward looking leading risk indicators to identify emerging risks in their early stage. This allows the organization to get out in front of those risks to manage or mitigate before they fully develop.
Many small and mid-size investment managers face the challenge of trying to build a diverse and resilient business within a limited operating and investment platform. Competitive pressures may lead investment managers to develop product offerings that require additional resources beyond their existing platform. This product expansion should be critically evaluated to determine if the required AUM targets can be achieved to yield the necessary operating margin.
The SEC’s Office of Compliance Inspections and Examinations (“OCIE”) has identified 2017 examination priorities that reflect its views on areas…
