CMRA assists Plan Sponsors, Endowments and Foundations with managing and measuring their funds' risk. Our services include evaluating the risk management effectiveness of both internal and external managers as well as performance measurement and asset/risk allocation methodologies. Plan Sponsors face the challenging task of managing their investments to meet future needs while effectively minimizing risk. CMRA strongly believes that building and maintaining an effective risk management process is a critical part of meeting ones fiduciary responsibility.
 

Click to view:

• What is Risk? - Chapter 1 of Hedge Fund Risk Transparency: Unraveling the Complex and Controversial Debate
• IAFE Investor Risk Committee’s Hedge Fund Risk Transparency Survey 06/06.
• CMRA’s RISK INSIGHTS - Transparency: Pros & Cons.
• CMRA’s RISK INSIGHTS - Performance Measurement & Attribution.
• CMRA’s “How to Select a Buy-Side Risk Management System“. Also with a detailed comparison matrix.
• The Risk Standards for Institutional Investors.

CMRA Services

• Risk budgeting
• Hedge fund risk transparency
• Enhance manager evaluation process with in-depth risk assessments
• Portfolio construction
• Hedge Fund manager selection
• Establish reporting requirements for investment managers
• Create customized risk and performance reports
• Develop meaningful risk limits and establish plan-wide risk appetite
• Independent valuation
• Build risk management infrastructure and process
• Best Practice comparison
• Information vs. data
• Cross manager aggregation and analysis
• Risk systems needs, analysis and selection
• Derivatives/structural products/alpha transport
• Risk adjusted returns
• Risk and derivatives policies, review and development
• Risk governance
• Design and implement risk adjusted performance measures
• Management training
• Refine asset allocation process to incorporate risk budgeting
• Enhance investment selection process to include broader range of asset categories
• Build in-house treasury/collateral management functions
• Implement Value-At-Risk, Stress Testing and Scenario Analysis
• Provide independent risk oversight and internal audit services
• Review compliance with investment guidelines, policies and procedures
• Review business processes for operational risk using pragmatism and experience
• Build customized benchmark indices
• Provide ongoing due diligence for risk
• Risk attribution
• Hedge fund risk transparency
• Style specific risk visualization
• Operational risk training

Selected Assignments

Reviewed risk management policies and practices at a large university endowment.

Performed a comprehensive risk assessment and updated internal and external risk management policies, implemented improved risk reporting, and reviewed internal and external investment managers for a large corporate pension fund in the US.

Provided an expert analysis and report in a corporate pension dispute.

Conducted an independent risk assessment for one of the largest mutual funds groups for each of its fund's portfolios, and designed and implemented risk management policies, controls and procedures for all financial activities. In addition, CMRA conducted a training session for the Board of Directors.

Served as Technical Advisors and Coordinators to the Risk Standards Working Group in the development and release of the Risk Standards for Institutional Investment Managers and Institutional Investors. The combined Working Group and Comment Group consisted experienced individuals from over 70 major pension funds, endowments, foundations, insurance companies, investment managers, master trustees, regulators, consulting firms and academics.

Performed a comprehensive risk assessment and updated internal and external risk management policies, implemented improved risk reporting, and reviewed internal and external investment managers for a large corporate pension fund in the US.

Evaluated the VaR implementation and reporting to the Board of Directors of one of the largest non-US plan sponsors.

Developed derivative guidelines for the overall fund and its investment managers of a large US corporate pension fund. This included the design of a fund-level risk reporting and aggregation reporting system to drastically improve the ability to manage the trust assets.

Analyzed the circumstances surrounding Orange County’s unexpected collateral calls for an assessment of the impact on the overall portfolio and investment strategy.