Bad Trading Controls Could Lead to Blow Ups
Recent hedge fund blow ups and mutual fund woes related to market timing and valuation may be a harbinger of things to come. Part of the problem has to do with trading controls that are either weak or non-existent. For institutional investors such as pension funds, this could spell disaster. According to President of Pension Governance, LLC, Dr. Susan M. Mangiero, CFA and Accredited Investment Fiduciary Analyst, "Pension funds have oversight responsibilities with respect to external money managers. They would be remiss not to review their service providers' trading controls. We have only to look at recent headlines for examples of how bad things can get when rogue individuals or computer problems are left unchecked."
The process used to determine limits, authorized persons, style drift early warning signals and liquidity traps are a few of the many topics to be discussed during an August 8, 2007 webinar (noon to 1:15 p.m. EST).
Entitled "Fiduciary Risk, Trading Controls and External Asset Manager Selection," the webinar boasts practitioners with trading desk and risk control experience, including moderator Dr. Susan M. Mangiero and expert guests - Mr. W. Anthony Turner, Principal, Financial Tracking, LLC and Mr. Gavin W. Watson, Business Manager for Asset Managers, Pensions and Insurance, RiskMetrics Group, Inc.
Persons who attend this 75-minute webinar will learn the following:
- What Constitutes "Must Have" Elements of Effective Risk Management System
- Ways to Detect Deviation from Management Style and/or Excess Position Concentration
- Red Flags Regarding Possible Rogue Trading
- Industry Best Practices for Trading Controls and Lessons Learned About What to Avoid
Pension Governance, LLC is registered with CFA Institute as an Approved Provider of professional development programs. This program is eligible for 1.5 PD credit hours as granted by CFA Institute.
For more information about the webinar or to register for a modest fee, visit http://pensiongovernance.com/webinars.php?PageId=58&PageSubId=59.
