RT Journal Article
SR Electronic
T1 Reflections on Buy-Side Risk Management After (or Between) the Storms
JF The Journal of Portfolio Management
FD Institutional Investor Journals
SP 84
OP 92
DO 10.3905/jpm.2010.36.4.084
VO 36
IS 4
A1 Bennett W. Golub
A1 Conan C. Crum
YR 2010
UL https://pm-research.com/content/36/4/84.abstract
AB This article highlights and emphasizes the importance of eight specific principles of risk management. The credit crisis of 2007–2009 has clearly reaffirmed the importance of a strong and effective risk management function, and these eight principles will help buy-side institutions think through their risk management organizations. In this article, Golub and Crum make the case for the importance of institutional buy-in, alignment and management of institutional interests, getting risk takers to think like risk managers, a fully engaged but independent risk management organization, understanding fiduciary obligations, bottom-up risk management, and constant monitoring of risk models for accuracy and relevance—and that risk management does not mean risk avoidance.TOPICS: VAR and use of alternative risk measures of trading risk, risk management