Risk Management for Investment Funds: A Practical Guide for European Funds in International Markets

The first comprehensive risk management guide to European investment funds from a team of financial experts in international markets.

The European investment fund market is one of the biggest financial markets in the world with a total value of approximately $17 trillion US dollars. In this comprehensive yet practical risk management guide, four financial experts from diverse backgrounds—including a practitioner, a trainer, a regulator and an academic—explain how to assess and manage the risks of European investment funds using the latest research and strategies. In addition to covering the fundamental aspects of funds, the authors offer valuable insights gleaned from case studies, European market practice, and detailed examples, which encompass:

• Analytical methods of successful risk managers in European investment funds
• Insight into the risks confronted by asset managers, fund management companies and fund depositaries/custodians
• Innovative risk-management strategies of key players in European fund markets
• Essential advice on managing risk in UCITS and alternative funds

Packed with insights and information that readers will not find in other books on funds, Risk Management for Investment Funds covers the complete range of financial and non-financial risks that funds face, including market risk, credit and counterparty risk, operational risk and liquidity risk, as well as emerging risks such as climate risk and technological risk. The book also provides extensive information on the tools used by risk managers, e.g., value at risk, stress testing, modelling, probability analysis, and asset valuation. 

Readers will learn how risk managers weather financial storms, such as the Financial Crisis of 2008 and the COVID pandemic, when traditional models of risk management require creative new approaches. In its wide coverage, the book is the most comprehensive publication on risk management for investment funds on the market.