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Our vision is to effectively manage risk in order to capitalise on opportunities and improve performance. Detailed risk estimation and management are key components of the investment process across all of our strategies.
The key to our success has been well-constructed portfolios that will both outperform in good markets, as well as protecting the client’s capital during difficult market conditions. This approach has been central to FVP Holdings since day one, establishing risk management as a core discipline. Our dedicated team that oversees risk management begins this process. Emphasis on liquid markets, proprietary risk models and a diversified funding structure seeks to further strengthen our approach.
A dedicated risk management team
Operating independently of the investment businesses, and reporting to the CEO, Chief Risk Officer Keith Walker guides the allocation of risk capital. It is supported by a dedicated research and development team to create custom tools and technologies.
The Risk Management Center
FVP Trade’s Risk Management Centre provides a comprehensive view of the various investment portfolios and how they fit within pre-established guidelines. Built-in 2018, its front-end consists of a 27’ by 8’ interactive touch screen designed to visualize data in ways that allow for rapid comprehension. Its back-end systems, which connect to every FVP Trade office worldwide, continuously run a wide range of operational readiness, risk, and stress test monitors.
Run rigorous processes
In pre-trade discussions, the Portfolio Construction and Risk group work to identify the impact of potential trades on a portfolio’s risk and stress exposures. In the ex-post analysis, the group evaluates the skill, infrastructure, investment potential, risk, and working capital utilisation of each business, using this information as a part of the risk capital allocation process.
Reinforce the culture
A solid framework is essential, but successful risk management can only be accomplished when it becomes a central part of the portfolio manager’s analysis of potential trades and portfolio construction. Continuous communication and collaboration with the investment teams, combined with an in-depth understanding of the portfolios, play a critical role in maintaining and strengthening our risk culture.
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