New Insight

THE CASE FOR COMBINED PERFORMANCE AND RISK ANALYTICS

ONE SYSTEM – CONSISTENT RESULTS

Technology is now available to provide performance

reporting and risk analytics from a single platform with a

consistent data source.

Incompatible, siloed legacy systems have been inefficient and expensive for too long.

Labor intensive and time-consuming workarounds

have struggled to reconcile risk analysis with multi-asset risk reporting, without a great deal of success. In a highly competitive marketplace, rival asset managers now vie for market share and the

most efficient will win through.

THE BAD OLD DAYS

The battle will be decided by asset managers’ ability to meet the very different demands of key stakeholders without requiring multiple systems.

STAKEHOLDER DEMAND

Regulators: Look for robust

systems, accurate and consistent data

and strong risk reporting credentials.

Clients: Seek sound risk

management and fast, accurate performance

measurement and analysis against benchmarks.

Internal clients: Seek rapid

and consistent reporting across

all aspects of the business.

“Faced with these urgent challenges, the vast majority of institutional investors are ramping up their spending on managing data.”

REPORT FROM GLOBAL CUSTODIAN STATE STREET

STATE STREET SAYS:

INTEGRATED RISK AND PERFORMANCE MEASURES

The case for integrated risk and performance analytics has never

been stronger.

Firms that cannot meet this challenge will be less competitive.

“The consistency of the measurement between the risk and the performance allows you to drill in, allows you to do more and more detailed analysis and to know that your numbers are being

generated self-consistently.”

DATA CONSISTENCY IS VITAL

Damian Handzy, StatPro’s Global Head of Risk says:

SOUND BASIS

Once a sound basis of data is established it can be sliced,

diced, queried and interrogated but it will always be consistent

and always reliable.

The cloud provides the key technology to achieve this.

TECHNOLOGY IN THE CLOUD

Combined data sets

Remote, secure, cost effective

hosting

Unlimited scalability to crush the

calculation window

SECURITY ENHANCED

Access to data and tailored analytics is governed by roles and permissions.

The middle office remains the

gatekeeper but has the confidence to share the right data to the right people to encourage collaboration.

THE RESULTS...

• Ease of access and control

• No conflicts in the data

• Frictional costs of workarounds and fixes removed

• No more costly legacy systems to buy, upgrade, maintain and replace

• One system across all asset classes for both performance and risk

100 TRILLION REASONS

PWC estimates that global assets under management will reach

US$100 trillion by 2020

The lion’s share of this will be taken by the most efficient, cost effective firms that demonstrate the

highest levels of stakeholder service.

Out of the shadows and into the light…

IN SUMMARY

Combining risk and performance analytics has stepped out of the shadows of the middle office and is set to take center stage in the

competition for business, long-term survival and profitability.

• Stakeholder demand is forcing greater discipline in data analytics

• Computing power can now use big data to produce smart data

• Cloud technology enables performance and risk analytics to be combined

• An end to legacy silo systems, inconsistent data and manual interventions

• Greater efficiency, lower cost and increased collaboration and competitiveness

TAKEAWAYS

LOOKING FOR IMPROVEMENT IN

YOUR MIDDLE OFFICE?

Making the Link: the strategic benefits of combined performance and risk analytics

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