The annual ALFI & ALRiM European Risk Management Conference, which took place on 26 May 2016, highlighted the fact that risk management is a key component of the governance framework for asset managers. It also emphasised the fact that Luxembourg remains a centre of excellence in risk management.
Speaking to more than 250 participants, Denise Voss (Chairman, the Association of the Luxembourg Fund Industry - ALFI) and Marco Zwick (President, ALRiM) opened the conference by highlighting the strong evolution and the growing importance of risk management in the investment fund industry. They also reinforced the important role of risk managers in this rapidly evolving environment.
Following their introduction, Pierre Gramegna, Minister of Finance, delivered the opening speech on geopolitical risks, referencing current events such as the EU referendum in the UK, the Greek bailout, and recent debates surrounding the Schengen Treaty. He concluded that the current risks the European Union is facing needs to be tackled by a strong union of member states.
The opening speech of H.E. Gramegna was complemented by a keynote speech from the Chief Economist of GAM, Lawrence Hatheway, who placed geopolitical risks in the context of actual market data using historical Chinese and US real and nominal GDP growth figures, US household income data, and exchange rate barometers focusing on Sterling.
During the conference, a number other of topical issues were addressed by experts, including:
- Liquidity risks in asset management
- Global footprint - distribution risk management
- Implementing a risk framework for a PE funds
- Cyber threat for funds
- Funds' risk profile - from key considerations to a practitioner's guide
The expert speakers from across the world addressing these issues included Sacha Reverdiau from Nomura, Michael Derwael from LODH, Joanna Cound from Blackrock London, David Martin from Pictet Geneva, Patrik Karlsson from ICMA London, and Damian Handzy from Investor Analytics from New York.
The conference concluded with a much anticipated panel on risk management developments with representatives from the Luxembourg Regulator, tackling issues on new reporting requirements and focusing on UCITS RM reporting.