GARP Buy Side Risk Managers Forum Publishes 'Liquidity Risk Principles for Asset Managers'

Leading buy side risk professionals create a guide on liquidity risk in the context of investment management for external clients. 

JERSEY CITY, N.J., Oct. 27, 2017 /CNW/ -- The Global Association of Risk Professionals (GARP) Buy Side Risk Managers Forum is announcing the publication of Liquidity Risk Principles for Asset Managers, a statement of principles and guidelines for assessing and managing liquidity risks.

The forum – consisting of heads of risk management and chief risk officers from investment management and advisory companies in the U.S. and worldwide – has created a 16-page document that defines basic concepts and discusses fund liquidity risk management and governance. The publication offers a set of principles focusing on basic liquidity risk transparency (estimating both asset liquidity and liquidity demand), principles on management liquidity risk in the investment management process and principles on liquidity risk governance. 

"There is no one-size-fits-all approach," the introduction says. "Managers should design their programs relative to what is appropriate for the investment strategies they run and the clients they serve . . . As an overarching guiding principle, investment managers have the fiduciary obligation to manage risk in the best interests of their clients, ensuring liquidity risk, like all other risks, is taken in line with client expectations and tolerances."

"With this publication, the GARP Buy Side Risk Managers Forum has defined a set of principles to help educate industry practitioners, fund boards, regulators and others frame their approach to managing liquidity risk in the best interests of investors that we collectively serve," says forum member and former Forum Chairman Ross Cuddeback, Head of Risk – Americas, Deutsche Asset Management. "The document is not a liquidity risk 'how-to' manual, nor is it meant to be a commentary on regulatory rules, but rather a collection of practical principles meant as a guide with a shared goal of enabling better liquidity risk transparency, ultimately enabling better portfolio management."   

Liquidity Risk Principles for Asset Managers can be accessed here.

"The Forum's activities are unique and their work is important to the global investment management community. They proactively and in a non-partisan manner address current issues by bringing to the discussion the vast senior collective experience gained from being leaders in the world's leading asset managers," said Richard Apostolik, President of the Global Association of Risk Managers. "The Forum regularly discusses and debates issues around best practices with the objective of furthering the profession of risk management within asset managers."      

About the Global Association of Risk Professionals
The mission of GARP (www.garp.org), the premier association dedicated to the education and certification of risk professionals, is to elevate the practice of risk management at all levels, setting the global standard for the industry through independence, expertise, and leadership. Founded in 1996, GARP is a not-for-profit, nonpartisan membership organization overseen by a volunteer Board of Trustees composed of leading practitioners. The organization has over 150,000 members in more than 190 countries and territories.

About The GARP Buy Side Risk Managers Forum
The GARP Buy Side Risk Managers Forum consists of heads of risk management and chief risk officers from investment management and advisory companies, including asset management firms in the U.S. and worldwide serving retail, high-net-worth and institutional clients. For a list of current members of the forum, click here. For a copy of the Forum's September 2015 paper entitled, Risk Principles for Asset Managers, click here.

For all inquiries please contact:  
Craig Collins, SVP, Head of Media & Global Business Development 
Global Association of Risk Professionals (GARP) 
(o): +1-201-719-7242 
craig.collins@garp.com

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SOURCE The Global Association of Risk Professionals (GARP)