Elevating risk management to a strategic partner in investment decision-making

The role of risk management within investment firms is undergoing a significant transformation, driven by market volatility, emerging risks and rapid technological advancements. Traditionally seen as a compliance-focused function, risk management is now evolving into a strategic partner in investment decision-making, working closely with portfolio managers to optimise risk-adjusted returns.

This article delves into the key themes discussed during a Risk.net webinar sponsored by S&P Global Market Intelligence. These include the growing collaboration between risk and portfolio teams, the need for a forward-looking and adaptive approach, the increasing reliance on technology and data analytics, and the integration of emerging risks such as climate risk into investment frameworks. The feature emphasises how risk managers are fostering stronger communication, leveraging advanced analytics and addressing emerging challenges to navigate today’s complex market environment to achieve sustainable long-term success.