RISK MANAGEMENT
BY: MAHA KHAN PHILLIPS
PROFILES BY: STUART NEWMAN
R
isk management has been thrust into the recruitment company. She says that risk management
limelight since the credit crunch began. may involve everyone from the performance
Investors are asking what purpose risk measurement team to providers who off er external
management serves, if not to highlight the inherent measures of risk.
dangers of certain types of investment structures.
Managers of risk say they are often disregarded in the DIFFERENT RISKS
hierarchy of management decision making. While this Th ere are numerous forms of risk within the
was true in the past, it will not be so in the future investment business. Market risk will include equity,
when lessons from the credit crunch are learnt, say credit, commodity, currency, and interest rate risk.
industry experts. Th ose who look at market risk tend to depend on
Risk managers are positioned throughout the models and value at risk approaches. Risk modelling
investment business. “It’s a function which is almost takes place within the business, but outside providers
everyone’s responsibility within a business. It can be a such as MSCI Barra and Riskdata also provide
function in compliance, business management, and services. Th ose involved in operational risk will look at
portfolio management,” explains Kim Yates, director of company wide risk implications ranging from the
the asset management practise at Principal Search, the development of disaster recovery areas to the danger of
miscommunication between departments, while
others risks, be they reputational, political, or legal,
will be handled within divisions which focus on the
MIKE ABOUAF
relevant area.
Title: Assistant Investment
Risk Manager, EMEA
Current employer:
Babcock & Brown
Previous employers:
Self-employed success – creating, fostering and utilising networks within and
University: University of outside the business. Understanding the ‘who, what, when and
Technology, Australia how of investing’, then structuring this knowledge into successful
Degrees: Bachelors in Business deals is a crucial skill. We can add value by combining this with a
Professional Qualifi cation: critical mind.
CFA Level II candidate

How do you think the role you’re in now will change over time?
The increasing number of complex instruments and transactions
What attracted you to this career path?
prevalent in business operations will inevitably lead to new,
Risk management provides for interesting insights into the
unpredictable risks. Going forward, risk managers must have a
fundamentals of not only investments but also how these
more intuitive understanding of how these factors interact with
investments interact within successful companies. I’m exposed to
the success of a company.
activities from an entire array of asset classes.
Also, with such a huge focus on macro issues, it will be
impossible for organisations to continue assessing and acting on
What are the major challenges you face in your position?
risks solely on a micro level.
Over the long term, it is vital for people in this fi eld to better
understand their roles both individually and collectively within an
Do you have advice for someone intending to pursue the same
organisation. It is in their interest to sell themselves as part of,
career path?
not a hindrance to, effi cient business.
Be proactive. Employers are looking for motivated, lateral
thinkers who think outside the box on a daily basis. Build
Are there certain skills you would consider useful for your job?
networks, maintain contacts and strategically use all resources
It is vital to work with other areas of the business to achieve
available to you.
34
330-55 investman_functions.indd 340-55 investman_functions.indd 34 222/11/08 11:59:292/11/08 11:59:29
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100