Hedge funds will continue to be under great pressure to improve their
operational risk management, especially the ones with multiple strategies, prime brokers,
office locations, service providers, vendor products, and internal systems. Their operational workflow must demonstrate
proper checks and balances, complete with multi-way reconciliation amongst prime brokers, execution brokers, swap counterparties,
fund administrators, risk providers, and internal systems.
Internal systems and vendor products used by most hedge funds are not
flexible enough to handle the data aggregation and reporting needed for managing
operational risk. As a result, hedge funds typically solve these operational issues by creating manual
policies and procedures to supplement their IT solutions and vendor products. This operational
burden increases as hedge funds grow in size and complexity.
Our consulting work specifically targets the
optimization of operational workflows, and the need for multi-way reconciliation, data mappings, and automation.
Our collective experience and skill set
cannot be learned easily and differentiates us from general purpose management consultants. We have also
built many useful components and SQL models to address the need for data aggregation,
exception-based reporting, and workflow automation.