Transcript Risk Road Map: Navigating the Evolving Risk Landscape in

BNY Mellon Alternative Investment Services
October 20, 2011
Risk Road Map: Navigating the Evolving Risk
Landscape in the Hedge Fund World
Moderator: Brian Ruane, BNY Mellon
Panelists: Dolores A. Atallo, Deloitte
Viju Joseph, Eton Park Capital Management, L.P.
Eric Jacobs, King Street Capital Management, L.P.
1
Who will win The World Series?
A. Texas Rangers
B. St. Louis Cardinals
2
How would you describe your firm?
A.
B.
C.
D.
E.
F.
Hedge Fund with less than $1BN
Hedge Fund with $1BN - $5BN
Hedge Fund with more than $5BN
Institutional Investor
Industry Influencer
High Net Worth Investor
3
Redefining Risk
A defining characteristic of Hedge Funds is their focus on managing risk.
As we all know, fund managers have always focused on managing and
mitigating market/investment risk.
Other than market risk, which
type of risk would you rank as
a most important risk factor?
A.
B.
C.
D.
Liquidity / Funding Risk
Counterparty / Credit Risk
Operational / Fraud Risk
Regulatory Risk
4
Redefining Risk
Which type of risk do you feel is
currently the most manageable?
A.
B.
C.
D.
Liquidity / Funding Risk
Counterparty / Credit Risk
Operational / Fraud Risk
Regulatory Risk
5
Risk Role
At your firm today, how empowered is your Chief Risk Officer?
A. Veto rights
B. Reporting function
C. Can close out trades
6
Evolving Governance Models
Moderator: Brian Ruane, BNY Mellon
Panelists: Dolores A. Atallo, Deloitte
Viju Joseph, Eton Park Capital Management, L.P.
Eric Jacobs, King Street Capital Management, L.P.
7
Operational Risk
How have the resources allocated to your operation changed
in the last 3 years?
A.
B.
C.
D.
Increased by 10-20%
Increased more than 20%
Stayed the same
Reduced
0%
A.
8
0%
0%
B.
C.
0%
D.
Operational Risk
Moderator: Brian Ruane, BNY Mellon
Panelists: Dolores A. Atallo, Deloitte
Viju Joseph, Eton Park Capital Management, L.P.
Eric Jacobs, King Street Capital Management, L.P.
9
Managing Funding and Liquidity Risk
Moderator: Brian Ruane, BNY Mellon
Panelists: Dolores A. Atallo, Deloitte
Viju Joseph, Eton Park Capital Management, L.P.
Eric Jacobs, King Street Capital Management, L.P.
10
Managing Counterparty Risk
Moderator: Brian Ruane, BNY Mellon
Panelists: Dolores A. Atallo, Deloitte
Viju Joseph, Eton Park Capital Management, L.P.
Eric Jacobs, King Street Capital Management, L.P.
11
Disclosing Risk
Many hedge funds are providing risk reporting to investors.
Today, what type of risk reporting do you provide/receive?
A. Position based reporting from fund
B. Returns based reporting from fund
C. Both position based & returns
based reporting from fund
D. Position level reporting from fund
E. Reporting from a third party
F. None
12
0%
0%
0%
0%
0%
0%
A.
B.
C.
D.
E.
F.
Disclosing Risk
Five years from now, what risk reporting would you expect?
A. Position based reporting
B. Returns based reporting
C. Both position based &
returns based
D. Position level reporting
E. Other
F. None
13
0%
0%
0%
0%
0%
0%
A.
B.
C.
D.
E.
F.
The Future of Risk Management
Moderator: Brian Ruane, BNY Mellon
Panelists: Dolores A. Atallo, Deloitte
Viju Joseph, Eton Park Capital Management, L.P.
Eric Jacobs, King Street Capital Management, L.P.
14