The document discusses the imperative for asset managers to integrate performance and risk analytics on a single platform to meet stakeholder demands and enhance competitive edge. It emphasizes that leveraging cloud technology can eliminate inefficiencies of legacy systems, providing consistent and reliable data for analysis. With predictions of global assets reaching $100 trillion by 2020, firms that adopt this integrated approach will likely lead the market.

1. New Insight
THE CASE FOR COMBINED
PERFORMANCE AND RISK
ANALYTICS

2. ONE SYSTEM –
CONSISTENT RESULTS
Technology is now available
to provide performance
reporting and risk analytics
from a single platform with a
consistent data source.

3. 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

4. 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.

5. “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:

6. 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.

7. “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:

8. 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.

9. 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

10. 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.

11. 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

12. 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.

13. Out of the shadows
and into the light…

14. 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.

15. • 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

16. LOOKING FOR
IMPROVEMENT IN
YOUR MIDDLE OFFICE?
Making the Link: the strategic benefits of
combined performance and risk analytics
Review new opportunities through technology
for leading asset management firms
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